NEED ADVICE super cheap subject-to in foreclosure

[Account Closed]

Hello - I have come across a seller who likely is probably about break-even in their mortgage due to non-payment for three years. The lender has still not foreclosed. The seller is willing to give me the deed for pennies on the dollar. They have no intention of paying the mortgage, no interest in curing or saving the house, no interest in listing and selling on the MLS- they just want to be done with the bank's harassment and the entire situation. They have moved out of state. They understand that they would still be liable on the mortgage, but are hoping that I would be able to deal with the bank. What I am curious to know is if anyone has navigated the short-sale process with a seller, and would it be in any way possible to do it with the Deed having already changed hands? Do not blow this off as a thoughtless question - sometimes I think that sounds completely ridiculous, then other times I think maybe there is an angle. I imagine that I could have a contract with them to sell me the house if the short sale amount is approved, but a contract is a lot less appealing than a deed. Then I think maybe I could do some quick repairs to the home, and sell it for more than the amount owed, and pay off the prior owner's mortgage at closing... All assuming that the bank doesn't foreclosure in the interim?? Fishing for ideas here, while getting the info for title and the numbers together- I have not even seen the inside of the home yet. I am just at the beginning but as it is new territory for me, I need advice. Just as an FYI I would be paying max $9,500 for the property which has an ARV of $360-380K, save for the encumbrances of mortgage, and I'm sure, taxes- hence my eagerness to try and figure out how I might be able to swing this. Thanks for any input.

[Jason Johnson]

Hello Carly,  Is the house vacant?  What other leins are on the property?  I would not recommend paying the seller anything with no equity in the property.  Also, what is your exit strategy with this property?  With no equity to work with I'm not seeing many options here knowing that the bank will eventually want their house back.