Tenant moving from Foreclosed House -- Offered Loan Mod(HARP/HAMP

[Jacobus Rex]

Hello all you smart BPers!

   My name is Jim. From central MN.  My first post. This site is an absolute gold mine! Amazing!  My question is a little outside the box. I don't know if it is a workable deal or not. I would appreciate advice.

I have a 3/2 SFH rental. I had a tenant move in. Tenant just went through bankruptcy; and before that, bank foreclosed on 2nd mortgage on house the tenant owned(May,2016). Tenant signed lease with me (Jan. '17) because bankruptcy lawyer had told tenant that she needed to move since the 6 month redemption period was expired and the bank would be taking the property(Nov.'16). For some reason, probably due to negotiations in the bankruptcy proceedings, the mortgagee sent my tenant an offer for trial payments on a loan mod being done under the Home Affordable Modification Program. The tenant has repeatedly indicated she just wants to move on. She did not ask to get out of the lease. She has no money to make trial payments and get back on paying the loan/loans(@$110k total).

I told the tenant that she should not just let the house go.  A BPO that came with the loan mod offer suggests the house should sell for about $168k.  I reviewed some details with her bankruptcy attorney;  he also thought she ought to not let the house go.  My interest is obviously in picking the house up for myself since she really doesn't seem to want it.  Aside from questions such as house condition, does anyone know how I can buy this house from my tenant at or around what she owes on the house.  Because it's already foreclosed I can't negotiate something with her to quit claim it to me and then work a short sale for her.  I can't do Subject To at this point can I?  Is the only way forward possibly to front her the $3300 for three months of trial payments to see if she can get the loan back in line?  Or should I just contact the bank and offer to buy it from them outright?  This person has been through some hard times; part of the reason for her issues was due to a bad accident. I think I would like to get her some money for any participation in this.(But I am pretty sure tenant made a few bad choices too). The tenant seems to just want to walk away; she says she's had alot of harrassment with letters, phone calls and people coming to the door trying to buy the house off her.  Now I am politely trying to do the same thing. . .and she's kind of a captive audience because she's my tenant and she's discussed this all with me and shown me alot of the papers.  I feel bad about that but I see an opportunity and I tell her that she could get a piece of it if she'd participate. 

Any ideas on how I ought to move forward? Should I just talk to the mortgagee and see if they'll take an offer? They are the ones who had the BPO done. Think they'd just take what was owed to release the lien?( I think the deed is still in my tenant's name) I don't have the money in my bank. I'd need some hard money. But unless the house is an absolute armpit(I don't think so) this seems like a possible deal as the amount owed the bank is 65% of probable resale/ARV. If there's any path forward, I think time is of the essence.