2 Loans - short sale or what should I do?

[Dave Grosse]

I'll keep this as short as possible:

Wells Fargo in 1st position w/ $75,852 owed
Regions Bank in 2nd w/ $22,362 owed

house is in decent area, but needs a bunch of work:
roof, gutters, some fascia
new flooring throughout(~1400 sq ft)
landscaping
wallpaper needs removing and new paint in entire house
a few other smaller items

My market analysis is showing a FMV of roughly $98K as-is. Fixed up it should sell for $115K. I'm guesstimating about $12-$14K in total repairs to be made.

Here's where I'm getting hung up(this has happened in the past too, actually my first deal which tanked btw) m- If Wells Fargo is owed $20K LESS than what their FMV is likely to come in at, why in the hell would they not foreclose?

In the real world, someone would be absolutely crazy to pay $98K for this place in the condition it is in. I am thinking I shouldn't pay more than $70K total for it. I'd consider holding it and rehabbing it myself for the retail buyer, but I'd much prefer to get it much cheaper and flip it to another rehabber-investor.

OK I think I'm rambling now - feedback is much appreciated

[Bill Gulley]

Hi, have you seen WF appraisal? Maybe they don't think it's worth as much as you do, especially after expenses.....maybe they will just wait if they know the owner is trying to sell.

If you had another question, I think you answered it! Maybe 70K is on the mark. Bill