Hello BP,We are trying to work with Chase Bank on a short sale.

So just say out of the $xx required for closing, i have the money coming from Cash in the bank and the HELOC.It should be fine and if its not - you should reach out to another lender.

You're going to be hard pressed to find a bank that is going to give you a regular loan on a property that needs a lot of work. 

You’ll want to contact a tax advisor and a firm and bank who is experienced in setting this up.

CONVENTIONAL:A conventional loan allows you to put as low as 5% down and go up as high as you want, some banks may allow you to come even lower.

So any legality is probably going to revolve around the notion of selling an option on a property you don't own, which is going to be a problem in every jurisdiction, not just Texas.The way you resolve that is to either sell your option (assignment) or sell an option to buy your option, instead of selling an option to buy the property.Hope that's clear.

Banks?

When you have dozens or hundreds of tenants paying you every 30 days you don’t have to kill yourself saving back from your w2 job or beg the bank for a loan to buy real estate

Contact the banks.

If you are going with a traditional bank, your best bet is a smaller regional bank.