My gut tells me to ask them if you can short sell it.If you have other assets, because its a HML expect them to come after you for the delta - so foreclosure you will have a greater deficiency judgment.

Quote from @Joe Villeneuve: Quote from @James Hamling: @Victor Tofilski I can't tell you exactly why it hasn't leased yet but I can pick it apart and give you detailed road map of every deficiency I notice and how to correct. 

Keep in mind TExas allows deficiency judgements so thats a risk and why you never want to sell sub to in Texas especially

CA there is NO possibility of a deficiency judgement on a purchase money owner occ loan.. borrower can walk and the worse that happens is their credit will have a foreclosure if the bank goes that route or a deed in lu. 

And I 2nd Bill's highlighting of such, so as great you feel they are, there is some deficiency there.

Therefore, if one inspector cites a deficiency that another didn’t list on the prior inspection, it’s back to the drawing board with another scheduled inspection.

If one bedrooms are are$475 a month then the numbers tell me they are mostly smaller units.I would expect to find an antiquated set-up that locals arenot attracted to with dated if not deficient plumbing and Mechanicals.

Also, you may not seek any deficiency judgment as the lender accepts the property as full payment of amounts owing, it is a deed in lieu of foreclosure.A bit more as to Special Warranty Deeds, they may limit warranty for a period of time, but other matters may also be excluded, buying Subject-To, the SWD will except out the existing underlying mortgage lien.

Gary, I'm not sure what you mean about how to structure the deal as the property usually has deficiencies or issues when most rehabbers get them, but not always, the property condition really effects the how or what kind of deal you need to do.Contract for deeds are common where allowed and the property condition is not an issue except in making sure the property will qualify for future financing requirements.

If you are re-listing, are you remedying any deficiencies that would keep them qualifying for conventional?