I hope that is not to complicated for the appraiser to answer.

If she wants to stay a perm loan mod might be the best way to go.Lenders start them off with 3 month trial mods and then give permanent mods but take a long time.Perm mods only happen 10% of the time and this seller might not have the mental toughness to stick it through.Another option for her is chapter 13 and possibly "lien stripping" the second.She would not to talk to a BK attorney about that.If she does not want to stay at all then the "short sale" is the option.Make sure the husband doesn't have to sign off on it as they will usually be spiteful just to get back at the former spouse and not respond to request for signatures or financials the lender asks for.As you are a wholesaler though I don't see money in this for you.The bank will want the property listed with an agent for sale to try to get the highest price.The second will want money to go away and the first usually offers 1,000 or just forecloses but might offer more if the foreclosure process is long and costs a bunch of money and values are declining for the area each month.It could get way more complicated then I am describing on these.Sounds like you need to look at other deals.What I am surprised at is how you think there are a bunch of properties with equity sitting around.Many of these people refied during the boom times.They were buying houses and using as atm's as the values went up and up.The lender would go to 120% because the thought was the value would catch up with the loan as the market went up so there was ZERO RISK.We all know the answer to what happened with that thought process.

With the complications you are talking about it is possible you will need to pay higher than typical rates for this lending.

However that gets more complicated and you better understand the agreements you are signing.

These questions are only part of a list I would want to know the answers to---- prior to putting my money out.YOU could end up owning the house, so you need to protect yourself on all levels.ALL rehab projects are different, some very complicated and some easy.

Is it really that complicated?

There are SO many complications regarding LTV, 2nds, Leins, clear title etc, past taxes, more...more...more... and unless you are a seasoned short sale professional wait until the property comes on the market as an REO listing.

It is very complicated and I have lost money on more than a few occasions.

Too complicated to fund and secure the investment with co-beneficiaries....You could have an LLC buy it and then have hime buy you out of your membership in a buy-sell agreement with him leaving the company as an event of withdrawl in the event he fails to pay as agreed, lots of brain damage there for this property, IMO, but an option as well.Either buy it and sell on an installment arrangement with a quick-claim or special warranty deed in escrow, with a collateral agreement for the acceptance of the deed, more brain damage, orBetter, loan the money and take a deed of trust, as Don and Ann suggested, easier, cleaner and do not take an ownership interest in the property as a lender.

Or is it better to use a buyer's agent since the contract and negotiations may be more complicated than in an REO transaction?