What should I do with this home owner?

I got a call from a lady who owns a property in a blue collar neighborhood. Property in a good market is worth 110k. She owes 102k. I told her that if I did anything I’d only put an option on the property and see if I could find a lease-option tenant. She’s not in default yet, but she moved b/c she lost her job. I figure that I might as well bring up the subject of doing a short sale with the bank even though she’s not in default yet. The good side of me wants to help this lady, but the logical side says that there’s basically no margin here and I shouldn’t make her troubles my troubles. If anything I’ll probably be her first contact when she does go into default.

Your last sentence is right on point. It’s not usual but SS can be accomplished with a hardship letter indicating the HO plight prior to going into default. Good luck.

Yeah, I guess I already knew the answer before I even posted.