Good deal but lien on property

[Evans Murray]

I found this amazing deal on 3bds and 2ba w/garage for $53,700 but the seller has a home equity loan on it for $18k. The house needs some TLC but the ARV is around $120k. I personally know the seller and she desperately wants to get rid of the property. I was about to put it under contract today and that's when she told me about the loan. Does anyone have suggestions on how we can make the deal work? I thought about paying off the $18k out of the $53,700 for the purchase of the property then pay her the difference. But I want to be sure that I protect my interest in case she defaults. Any suggestions? Thanks!