Here is the situation. The home owner has an owner financed note remaining of 90K. Minimal to no repairs. ARV 185,000. Her note balloons or expires in 2017. Set up in 2012. I suspect it was not done to frank Dodd compliance.

She lost her job, found a new one that pays less but now can not qualify to refinance.  Credit 580, too much consumer debt.  

She wants to sell for 160,000.  Not really enough room for an investor.  I know she is getting offers in the 130 range but she is not in the immediate threat of foreclosure.  But she did not escrow taxes and I suspect does not have the cash to pay them soon...about $5,000.  She says she can borrow from family so shes not desperate (yet).  

What is solution I could offer her?  She mentioned selling it to an investor and then buying it back at a later date.  Is that even possible?  Arms length transaction???

Here is my creative thinking.

Assume the loan of 90k and offer her 50k cash.  $140,000 total. Below what she wants.  BUT agree to sell it back to her within a year for $10,000 more....$150,000.

In the mean time she would pay rent at my break even + a few hundred $$.  

Is this even feasible?  Is it an arms length transaction?  Would she be able to get financing assuming she paid off her consumer debt and improved her credit?

Any thoughts or am I trying too hard here?

@Priyanka Johri