Do I need an attorney? Seller Financing Problem

[Austin Unger]

I got an interesting foreclosure lead yesterday that I could use some help with. The seller purchased the property in 2010 using seller financing for $155,000 and he put $1,000 down and $1,000 toward closing costs. His payment was to be $800 a month interest only during year 1. Year 2 his monthly payment was $900 monthly with $800 going towards interest, $100 to principal. Year 3 the monthly payment was $1,000 with $800 toward interest. The payment has remained this way since 2013. So he should currently owe $140,000 in principle.

The seller doesn't have good credit and was having a hard time getting a car, so the previous owner financing the property suggested to roll the car into the loan ($15,000 car). The seller has fallen on hard times and has been unable to make the payments, now the previous owner is foreclosing on the property in 10 days. Here is the part that I might need an attorney to help with.... The paperwork is a hand written sheet of paper unsigned by both parties. that says "upon payoff/sale, subject to good payment bonus Gary (previous owner) will be entitled to a $35,000 return of principal/capital to reimburse me for prior losses" bringing the total balance to $198,000 ( which is much more than anyone will pay, so that he can foreclose and sell the property for profit) I attached the handwritten "loan modification".

ARV: $229,000

Repairs: $10,000

Closing Costs: $10,000

This seems like predatory/illegal lending and I have never come across anything like this. If I can help this guy, not only can he walk away, but I can get a great property. Should I consult with an attorney? If so can anyone recommend a good one in Phoenix?

Well wishes,