You have to know where the file is at with the bank.Is it in the foreclosure department,short sale department,customer service,collections,or loss mitigation.If the loan is owned by a small bank they tend to do workouts differently than the large ones.Options will depend on if it is Fannie Mae or Freddie Mac backed or it's a conventional loan.The process of lease optioning back to him is not allowed anymore and these are strategies investors use to use along with assignments and other things.The banks after short sales have grown in the last few years have systematized everything instead of flying by the seat of their pants on each file which is how we did them 3 to 5 years ago.It used to be a person in the loss mit department that would handle all the short sale files as the others didn't really know how to do them.As files grew the banks started up whole departments and hired file originators who were laid off from the loan origination side and moved to the loan default side.The banks have riders on all these types of strategies now where you would be committing fraud if you employed them.Once they enact a rule with addendums you have to find a new way to do deals and change strategies.If this person has recovered then their best best is to go after a loan modification especially if they want to hold onto the property.I am seeing permanent loan mods where the lender will put back payments into the loan.ExampleLoan is 140,000With back payments,penalties,interest,attorneys fees etc. now 150,000 is owed.Interest rate was 5% but now has adjusted to 8%They will adjust rate down to 2% for first 3 years,then 3% for 3 years, and so on and when they hit 5% keep that rate for the remainder of the new structures loan.The borrower might have to bring a few K to pay reinstatement fees and as not all back escrows and payments can be put into the new loan amount.The lender would rather do this than foreclose and take a big loss.The 3 month trial plans are easy to qualify for but the permanent restructures I mentioned are harder to get approved.If they deny the borrower for the first loan mod then they can ask for another.Many servicers can offer 2 to 3 different types of loan mod plans depending on the situation.Why would a servicer do this??

We're considering attempting a flip of a REO with fire damage. Water damage too since the roof is open and has been for sometime. We assume a complete gut of the 2nd floor, the attic/3rd and full roof replacement.We a...

Can you verify market rent through another means such as Rentometer (which has a free trial) or your RE Agent?

The only option would be if you wanna just take that amount own and let it go or you can set up the trial hearing.  

It was a very hard first flip and at times felt like trial by fire but it was worth it.

Most attorneys will give you advice for a smaller fee, represent you before trial for a moderate fee and charge quite a bit if the case goes to trial. 

For a couple of things, including the garbage disposal and the storage shed that was in the back yard, that clause also says that I may not replace it at all.Check with a lawyer on this, because it may not work in all states, but: I put in a clause that says the tenants waive their right to a jury trial. 

I'm also a leader/mentor in my local REIA.I've worked with trial attorneys, done deeper than most study into the quest to use LLCs to isolate risk... 

It was pretty much trial by fire and I literally had no idea what I was doing.

Unfortunately trial and error is the best prescription I have found for finding the balance.