Seller's house going to auction...how to land this deal?

[Joe Cassandra]

Got a lead from DM.

BACKGROUND ON PROPERTY

Home in top school district. Multiple houses updated selling for 370k in n'hood 

He owes 180k on mortgage. Ran into trouble a few years back...missed payment and fees puts arrears up to 50k. He has been fighting it for 5 years.

Opened bankruptcy in 2018 to clear debt and hold off foreclosure...just was dismissed end of Feb.

He says it needs 35k to get to 370k arv...I'll round that up to 55k.

(Have not seen house)

-----

If he could get the 50k and pay it back, it'll save his house from auction in 20 days.

He doesn't want to sell at 240k ,(what I offered).

He wants to stay in house for 3 more years so his kids can go to the top rated school until graduation.

‐----

OPTIONS

#1. Leave alone and maybe in 10 days he will sell to me at 245 ish

#2 Pay more (say 265k) collect rent at market rate of1900 per month for 3 years with agreement on him making repairs as they arise

#3 Loan him 50k at 15% and he says banks will cash out refinance in about 6 to 12 months.

Is there a deal here somewhere?