Help Solving THIS problem, drawing a temporary blank..

[Jonathan Newsome]

Alright BP, any and all thoughts on this particular deal would be appreciated! I'm trying to solve a problem that a client is facing, but I'm currently having just a slight 'brain fart'. 

Owner has a property (Town Home), that they took 2nd mortgage out on; Balance: $47k (total was $50k'ish)

Owner has unpaid balance of $5k (reason for pre-foreclosure)

Mortgage payment of $420/mo

Auction is very soon = owner wanting to rid the property.

ARV is $75-$80k.

Repairs to get rent ready = $5k-$10k 

Rent for the area is approx. $1,100. 

I was looking to structure this as a subject-to deal and pay the arrears, to keep the property from going to auction and reinstating the mortgage. The owner is fine with sub-to, as I explained a few different methods in which we could assist. 

My question is, with the numbers stated above, how would YOU structure this? Does this make sense to sub-to with the figures I've listed? If not, I would like to hear how you would assist this individual. What methods, if any would you use to solve this person's problem. Thanks for any guidance!

Also, if I didn't post enough info, let me know and I'll provide what I can. 

[Joe P.]

New to this type of deal, but essentially do you give the monthly mortgage payment to the current mortgage holder, and expect them to pay it in their own name?

Beyond the legal concerns of that, how do you force someone flush with cash in the pocket, with a history of not paying their bills, to do exactly that?

I'd want as much control over this as possible, and with a key cog being that person doing what they're supposed to do, it seems risky, given their history.

I might be missing something totally here, and this might be a great deal...but if it still contingent on someone doing what they're supposed to do with a flaky history of doing it...I'd personally be wary of that...