How can I help this owner out, by buying this house

[Jared Peterson]

I see a house on market that had a contract for 159k this year. However, it fell through when the inspector found a basement nobody knew was there (no stairs, previous inspectors have missed it for over 20 years) The house is completely remodeled, however the foundation repair has been bid at 70k and the owner owes 85k. Is there a way to help owner out of mortgage with paying 30-40k with a construction loan.