Strange behavior from Zillow.... Here's the search results when I search for 3150 Scriver.Zestimate: $848kWhen I click on nearby homes for sale and click on 3150, I get another estimate of value:Zestimate: $938,7999
Sounds like you were discharged from BK and your lender has probably filed a motion for relief from automatic stay. In case you were not aware, when you are in bankruptcy, the BK temporarily stops any other legal action, including foreclosure. Agressive lenders may request a relief from stay while you are in bankruptcy but most large banks usually just wait until the borrower is dismissed or discharged from BK before filing for a relief from stay.Now, with respect to selling your house to a friend. Banks (actually the servicers) will want to see that the house was marketed properly and that you are getting the highest and best price. Selling to a friend can be done but the bank and the investor holding the note must feel that the price is at or near market value. The best way to do this is have a real estate agent market the property and counsel you and your friend on how much they need to offer in order for the bank to approve your offer.If you don't market the property, the bank will be suspicious of the deal and in all likelihood, will not approve the short sale.
The lender is going to make their own determination of value. They will order a BPO (broker price opinion) and/or an appraisal. Typically, their valuation team will come up with a bottom line number that they are willing to accept. After that, they will use negotiating tactics to reduce their losses as much as possible. Remember, the lender doesn't want the house. If they get an offer that is going to provide greater NET PROCEEDS than a foreclosure, you should be able to get the short sale done.In addition, the lender will want to know that the property has received adequate market exposure. For example, when I list a short sale, I use a marketing strategy that ensures that the property receives ample exposure and, generally, will receive multiple offers. Once I have the list of offers, the seller usually counters with a request for best and final offer before entering into contract with a bona fide buyer.So, in your case, if the lender determines that the value is close to 100k even though it is listed at 120k, you should be able to get the deal closed.
Business decisions should be based on the numbers. IF the numbers don't add up, you can exercise your put option. Meaning, you have a contractual obligation to pay the lender and if you don't they can take the house.When you are upside down by 75k on a property that is worth less than 350k (estimated), it may be a better financial decision to let the lender take back the house. Only you can determine if that is your best course of action. Remember, the lender is looking out for their own interests, not yours. Perhaps you should consult with a Realtor who specializes in short sales or an attorney who can help you with the analysis.I work with a law firm that provides a free consultation for homeowners who are underwater. Please let me know if you would like to schedule a consultation.