Quick! Need Advice on Multifamily Foreclosure

[Miles Davis]

Good Evening Fellow BiggerPockets members!

I know for fact I have a great opportunity ahead and would like to maximize its potential & find a great strategy to making this work. I'll provide the numbers below after telling you my situation.

So my mother & I are currently tenants in a (4-Unit) apartment building in Washington DC. Currently there are 3 Units occupied (1 vacant, 1 occupied by the owner, 1 by another tenant and 1 occupied by my family). We have been paying below market rent for a while due to the owner not fully completing renovations and updating the units. The building has a great structure (brick, as most of DC was built), hardwood floors, unfinished back porch (was to be converted into another room but never completed), but might be easier to partially gutt and replace pipes, wires & drywall. The landlord is defaulting on her loan and slowly but surely headed towards foreclosure soon. 

I'm aware tenants get first right to purchase but what options/strategies can we choose? I would love to help the owner with keeping the property but unaware of creative strategies to do so. I feel really bad the owner is going to foreclose and would hate for this property to slip thru our hands.

Here are the details/numbers:

4 Unit Multifamily Apartment Building in DC

Each Unit has a living room, 1 bathroom, kitchen, dining area, 1 bedroom with back porch that can be converted into a 2nd larger bedroom (1bed/1bath w/ convert-able porch)

Current owner has less than $80,000 remaining on loan

Market Rents in the neighborhood are about $1500 for a 2bed/1bath or $1100 for a 1bed/1bath

Tenants paying aprox $800-900 in rent (below market rent)

A similar property was recently sold for $360k, immediately gutted and rented to Section8 where I'm pretty sure they are getting market rents and should be able to pay down property rather quickly.

Please HELP!!