With this current market they tend to be willing to take less.Contact the bank's loss mitigation department.However I would not mess around with lease optioning back to the seller.

But if selling is not an option due to the debt owed then its either stop making the payments and go after a short sale or make the best of a bad situation and mitigate losses.

Can't a mitigation be done to become okay with buying this property or is the rule pretty hard and fast????

Stop and think for a second why the father's participation was allowed; it mitigates legal liability.

Tony, all,If you're interested in hearing about how to mitigate the risk of a personal guarantee via a brand new category of insurance, let me know and we can connect offline.Mike

I am just trying to mitigate any possible liabilities.

I can help you with this and looking at other mitigation techniques to lower your insurance costs.

Sure, it's possible that it rents at 20% below market, but can't I mitigate that risk?

Am I correct in that the keys to these kinds of deals and their risk mitigation (and any deal, for that matter) are thorough due diligence and effective ongoing management?

Then they go for the short sale where they are only on the loan on the other house that is underwater in value and dump it for a loss.You have tax implications as well to mitigate but not as bad as coming up with tons of money to get out of something.