Sub2 Turned SS; Have LO Buyer

I was working on a Sub2; realized that seller $18K (4 months) behind; in foreclosure. Now we are working on a Short Sale (SS) with Wells Fargo. He moved out; I have Lease option buyer that wants to move in 2 weeks. The house has about $40K equity. If the SS goes thru I was going to buy it conventionally.

Now that I have a buyer how do we proceed?

Can I let her move in now? And keep working on the SS. Even if SS is denied I could buy it at the existing payoff and be ok (since I will add the 1 yr appreciation; that will move the profit from $40K to $60K).

In the mean time do I keep the rent money (we dont need to pay the bank since prop is in foreclosure and we are working on SS)

So in short, I will buy it at current payoff of $270 or SS price (offered $240K); wanted to check if I can squeeze some discount from WF; the buyer is in place.



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