Creative Financing Ideas For A Pending Foreclosure

[Damon L. Davis]

My Nanny's 3/2 SFH in a MD suburb is about to be foreclosed on. I'm mindful of the fact that they're struggling financially so it might not work out to buy their home and let them rent it back. I certainly wouldn't purchase it as an income-producing property. However, I might be able to acquire it for the amount they owe the bank which would prevent a foreclosure on their record. If my numbers are right I could acquire the place with nearly 200K equity.

If I got a lower mortgage payment all in, I might be able to lower their monthly payment by making their rent equal only what I need to cover PITI, and they could get to stay in their home. If they're unable to make rent.... well they were losing their home anyway.

What am I missing? What creative financing strategies would you pursue keeping the equity play in mind?