New possible short sale deal

Here is what I know so far…

HO is behind 3, now 4 months on payments.
Bank is Countrywide.
ARV/FMV is probably $90-100k. (It’s small, but a perfect rental in a good area)
Owes $91k
While just speaking to him, and inspector was just sent over by the bank. He mentioned something about the property value, and I almost SCREAMED in the phone to him, lol. $75-80 MAX!! So the inspector person said “we’ll say $75k”.
Repairs (as I know them. I am visiting the property in a day or two) Driveway needs paving, the rest of the property is in pretty good shape, according to a realtor that turned me onto the guy)

Here are my questions:
What should I start my offer with Countrywide for? I was thinking about $55K or so. Is that TOO low? The HO just wants out. He doesn’t care about it, he just wants to move. He’s happy with the $1k I offered him IF the bank accepts my offer. What do you guys think??


I got the Authorization form signed tonight. I didn’t have him sign a sale contract just yet, he wanted to go over them, which is fine, and I didn’t want to push. Plus, I’m trying to figure out how much I should offer Countrywide.

I have an estimate for a repair of the water main for $5100, plus probably about $1000 for repairs to the street. (This may be, and should be fixed by the City, but it is good to show Countrywide. There is enough room, because there are next to no other repairs, to account for that in my estimates. The main is causing a small leak, when a lot of water is used, in the basement. This can be used to show to the bank as well for reason to short.

The rest of the house is in excellent shape. All newly remodeled, newer roof, great floors in the living area (bamboo) and its a nice little house. It was last appraised for $106K, this past December or January.
He just got notice of foreclosure last week. the sale date is April 27th. The total amount owed, inclulding foreclosure costs so far, etc, is %96,750.00 The interest is 9.875%. We have a 6 month redemption period, so the interest alone from sale date to last day to redeem is $5k. So I think I have plenty of leverage to show to the bank, along with how sh**ty Michigan’s economy and RE market are.

Is $55 too low to start? I am hoping for a BPO around $75k, and that puts the banks number, probably, around $63,750. That’s a good buy for this property no doubt. I can rent this anywhere from 900-1000 probably. Its close to schools, walking distance to downtown. Very nice neighborhood. Can anyone with more short sale experience give me any more advice? See anything I’m missing?

Thanks!! :beer