Best bet: Consult with local investors and market specialists. 

I was terrified....i wish i had bought more..light fixes, and holds, turn over to prop mngmnt, with right funding in place beforehand is pretty easy..even less emotional than being to much into it involved present...i just suggest don't buy substantial fix, rehab and flip from out of state...and not knowing area or connections...but hold is pretty easy, not so hard, with right agent boots on ground...

I am ready to move full-time into the real estate industry, with the right move.End goal is to get involved in real estate investing (fix and flips mostly), but do not have the capital to jump into that yet.

If they involved an attorney you will have problems with these people down the line, even if you solve this issue.

If the chain of command gets involved, your interests are the last of their concerns.  

@Jinhee ParkI sold a flip to a FHA buyer.... took us 90 days... it’s painful for all parties involved.

I feel as if it’s my obligation to wow this person and make sure he knows I’m the best bet to list the property.

Great job to all involved.

The decision you face is almost the same as the one I had about two years ago...right down to about the same dollars involved.

Because there is an entire short sale process involved that no one involved currently seems to understand, it would be best to bring this to a good short sale realtor, or attorney or negotiator to get it moving in the right direction.