"they owe the bank $295,000"NO according to YOU she is on title but not the mortgage.If that is true she owes NOTHING to the bank.She just has a partial ownership by title with a property that is underwater in value.Even if it forecloses she can milk some more months as a "tenant at will" before the bank can get her out.Usually they will offer "cash for keys" for her to move.This time of year with court delays for evictions it would most likely take the bank awhile to get her out.She could always try to get the husband to sign an "authorization to release" from giving her the authority to speak about the loan to her.With an underwater house most owners/tenants just care about the mortgage payment.Example house was worth 200k but now worth 130k.Mortgage payment is currently 1,600 but owner/tenant wants payment of 1,100.The bank might readjust the loan payments rather than foreclose and take a big loss.It depends on what type of loan it is and who owns it and workout options.If you bought it for cash at foreclosure then she could stay as a tenant and you have her sign a lease and she rents from you.The details will be based on a state by state basis with time lines and risks involved.She could try to buy the note at a discount or get an investor to try to purchase it on a short sale and rent to her etc.The confusing part of your statement is you said she had 150,000 cash but yet recently filed bankruptcy.Are your sure the husband didn't file bankruptcy and she received the money from the proceedings??

Perhaps you could share some details about your first wholesale deal with the rest of us?

They usually want it to be "habitable", but don't usually care about the details.

But if you think they might manage SFRs, feel free to pass me the details and I will check with them.

No need to go through all the details to see they had the wrong number.Had it gone the other direction and they had sent you a check for $10,000, I have no doubt you would have accepted it."

Pay close attention to the details - open furnace closets, inspect the roof, look at the finishes and see if what you are looking at jives with what you are hearing.

Thank you for the detailed responses!

Here are the details of a deal I just completed.

If the contractor bids (say) $44,000... then you will have learned about the detailed bid and can walk away from the contract, since it is void based on the $26K stipulation.

Get more details, get an estimate of repairs, and then shop the deal around to see if you can't turn your $100 into a few grand.