Buying a Fire Damaged House

[Andrew Robison]

Hi everyone.  I have recently received a call from my first drive for dollars letter to a seller.  Go Me!  

Obviously it couldn't be easy for my first possible lead and i have a lot of questions as this is like nothing i have come across in the forums. 

First, the house has fire damage.  It does not seem to be extensive; maybe 15% of the property.  That is where the simplicity ends.  The owner stopped paying their home owners insurance.  I'm guessing they did not have it included in escrow.  Therefore they did not have insurance at the time of the fire.  The fire was enough damage to condemn the house. Because she did not have insurance the bank is covering the cost of the repairs.  

My first question is, will the bank foreclose? As far as i know they have not yet and the owner still owns the property.  

Second if the bank is to foreclose, can i buy it before that happens? Can I stop the foreclosure by buying the property if the issue is not based on money as usual?  

Also, they have not payed taxes on the property since the fire and owe back taxes for last year.  How soon does the owner or myself have to pay those off before there are any serious consequences?

Lastly the owner admits that they are going through bankruptcy because of utilities. If utilities are unpaid would any of that carry over to myself as the new owner?

One final note I am looking to move into this house personally at least for a year before looking to turn it into a rental. 

I'm sure i will have more questions so any other input is greatly appreciated. 

Thanks,

Andrew