Hey wholesalers: Is there any deal here?!

[Federico L.]

Help me understand this:

While looking at a house, I found another distressed property. A title search shows it was bought in 2005 at 30y fixed with a 80/20 infamous mortgage scheme:
- First mortgage (80%) $113,600
- Second mortgage (20%) $28,400   (assigned to another bank 3y ago)

Assuming ~6% interest back then, payments would add up to $851/mo. I estimate a principal reduction of ~$20K at best from the original $142K. ARV is around $130-140K, but the repair figure is unknown, perhaps 20-30K. I did not find other liens, taxes are up to date.

Since 'there is no meat on the bone', is there any deal to come by here, considering the owners are in distress and may be heading into foreclosure?  Even assuming payments doesn't seem like a good deal. Ideas?

Thanks!!