Subject-To or potential Short Sale offering?

[Account Closed]

So I had a seller today basicly wanting to just be out from under their house. In examining the comps within the area as well as the entire geographic location, it appears the whole area has been deppreciating for quite some time. Of course they told me they needed to move to another city for her husbands new job so either wanted to have their complete mortgage of $116,000 just payed off and be done with this SFH or else sell the house for no less then $132,000 (no their line of reasoning didn't make sense to me either with that last statement lol).

So after I looked at their house and comped it The house was exactly what the mortgage was leaving $0 equity. It was a 2007 and they had purchased it around that time and have lost a substantial amount of equity within that entire geographic location. Seems there is nothing but For Sale signs and forclosures there.

Now the info I got from them was just a quick convo so I could assess and do a little research before I actually drove over there. The pictures look great but that means nothing.

Given the quick assessment of $0 equity, maybe rehabs, deppreciating market over a few years now, is offering the Subject-To offer even viable here or should I just offer the short sale which is probably coming? I feel like I might lose credibility with my buyers list offering this up even if it is basically a free house assuming we located a tenant. It just seems like it would be a disaster in that state of deppreciation.

Any advice?