Creative Ways To Purchase a Distressed Property

[Josh Mills]

Hi all! 

Looking for creative ways to buy a pre-foreclosed property, the situation is below. 

The owner owes in the 400's on a property that is zoned 2 fam but they converted back to a 1 fam. Listing talks about the meticulous maintenance that was done on the property. Well after viewing the property it is in shambles to say the least. I would be surprised if 50% of the property is actually livable. The house is half painted half original siding, 3 bedrooms of the 4 are not livable and the stairs to the basement feel like they could collapse at any second. Bathrooms are old and outdated but functional. The asking price is priced as if the house was move in ready and the owner does not want to to entertain any offer below what is owed. Rough estimate to renovate is in the 175-225k range meaning that buying the property at the listing price would put you upside down very quickly. The owner has stated they just want to pay the bank and move on. 

The question is, is there a creative way to get the owner to sell it to me? Do I try to assume the mortgage? Any insight appreciated!

Thanks!