It's imperative that you have all options presented to you so that you can make an educated decision for you and yours.I hope this helps and have a great night.  

For people saying this looks like a good deal, how much does the current housing market affect your decision?

All responses you guys give become a part of my decision process.  

At best, if they haven’t fallen asleep or tuned the investor out, they have already made a decision.

So I'm trying to weigh up all the possibilities in order to take the safest and most profitable decision in the long run.Foreclosure, Deed in Lieu foreclosure, modification, short sale, cash for keys and resell; am I missing any other possible exit?

Just have to pose as a good business decision for both parties.

Also, It seems like you need to confirm whether you will be able to get a loan before you make this decision.

Well, that's business decision.  

In high-end properties small decisions can radically effect your sq/ft costs. 

Anyway, I knew I wanted real estate in my early 20s, but made a decision to start a business that failed around 2007 when people lost their jobs and had no more expendable income.