Buy note and do cash for keys instead of short sale

I got a call today from a homeowner who has stopped making payments on her second home, and would like to get rid of it but is underwater. To sell, we would need to do a short sale.

Instead I would like to purchase the non-performing note from the bank Citimortgage, and get the deed via a cash for keys arrangement with the homeowner. The exit strategy would be to either sell the house to a rehabber, or rehab and sell myself.

Has anyone else used this strategy, and what advice can you give? Any experience buying notes from Citimortgage?

The old rule still applies, 70%XARV-Fixup=Purchase price.

If you can get the note and the keys for that or less then it’s a goer.

If the house is underwater, you’re looking at a deep discount on the note, and maybe $5K to get the keys, although she doesn’t live there, so it’s possible she could just walk away.

You can ask, the bank can only say no.