Foreclosure/short sale question
I am not a short sale expert so i am turning to the group for advice. I have a client who inherited a single family home in queens  and a mixed use building in a pretty good area of Brooklyn ny. Both properties are totaly underwater and both lenders have already expressed that they are not interested in a short sale and would not release any funds to the heirs of the estate if they did do a short sale. I have a listing agreement with them for about another 8 months. The lenders both offered cash for keys about 15k each. The Brooklyn property offered the 15k to file the  letters of administration so that the bank could proceed to do the foreclosure to which we turned down. The home in queens offered 15k cash for keys deed in lieu of foreclosure which we are still attempting to negotiate with but will accept if needed. The story is even more complicated but these are the relevant facts. What else could they potentially do? I have worked over 3 months on this and I am at the point where I want to throw in the towel and focus on deals that I can make some $$ on. Thank you in advance.
[{"id": "fj9ifjh", "text": "They need to talk to a Real Estate lawyer yesterday.", "replies": [{"id": "fj9n7tl", "text": "They have an attorney who is handling the estate. The problem is they already paid the guy upfront and he is dumber than dirt. He keeps asking me what to do. They can\u2019t afford to hire a new attorney.", "replies": [{"id": "fjanglc", "text": "Wow...ask for a refund?", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fj9lisk", "text": "How are they under water ?  \n\nDid someone put a huge loan on them before handing them over to your friend ?", "replies": [{"id": "fj9n0i8", "text": "Yes. Their parents took out loans a long time ago and were in default already before they passed.", "replies": [{"id": "fj9ofhy", "text": "And there's no equity in either property ?", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fj9oz49", "text": "No. The parents refinanced a few times. And there is a hard money loan that is crossed collateralized between both. They owe close to 1.2 on the Brooklyn property. In its current condition with squatters it\u2019s worth maybe 7-800k. The house in queens they owe close to 600 it\u2019s worth max 400.", "replies": [{"id": "fjajr1d", "text": "Then what are you trying to do ???\n\nAt this point, hold off the short sale for as long as possible (you're in the best state possible for this) and collect as much rent as possible.  And then let it go.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fjajx58", "text": "There is no income.", "replies": [{"id": "fjas4j1", "text": "Then take the 'cash for keys' and hope the parents put that money aside for your friend.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fjau58c", "text": "The problem is they will then have to pay the attorney more $$ to go to the courts to file the letters of administration. In the end it won\u2019t be worth it", "replies": [], "depth": 1}, {"id": "fjavujq", "text": "That\u2019s why I am here to see if there are any other options. At this point it\u2019s less work and money for them to walk away", "replies": [{"id": "fjaxsga", "text": "He's upside down and there is no income ... that's kinda the end of the story.", "replies": [], "depth": 2}, {"id": "fjbo14m", "text": "The foreclosures will wipe out the second mortgages/loans/liens.  There\u2019s no equity in these, and would need to be rehabbed just to rent.   The only option is if the rent&gt;payments, but no way Jos\u00e9. \n\nTake the $15K, and be happy.", "replies": [{"id": "fjbo4sp", "text": "It won\u2019t be 15k after the attorney fees filing fees and my fee. They turned it down already.", "replies": [{"id": "fjbta8g", "text": "Tell them to enjoy their foreclosure experience.", "replies": [{"id": "fjbthaw", "text": "Exactly. We asked them for 50k then said we would accept 25k. I don\u2019t even think they understand the shitstorm that is about to hit them if they forclose. There are squatters in the building and there is shit flooding the basement as we speak.... good luck to them I guess", "replies": [{"id": "fjbu7dl", "text": "\u201cCan\u2019t fix stupid.\u201d  Applies here.\n\nIf properties are in estate, then foreclosure won\u2019t hurt their credit, but they\u2019re walking away from $$$.", "replies": [{"id": "fjbyd3x", "text": "They will have to pay a lot in fees just to do the administration. By the time they do that and split between all the relatives it will be peanuts. At a certain point something is not better than nothing especially considering the bank will likely hound them for documents and other red tape. Not worth it.", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fjazjp9", "text": "That\u2019s what I was thinking. Thought I would give it a shot if anyone here knows something I don\u2019t.", "replies": [], "depth": 1}]