Foreclosure opportunity...What options do I have? What would you do?

[Amy Wolf]

Hi all,

I ran into a friend the other day who confided in me that her family is about to lose their house. She is trying to get some paperwork finished, but her house is due to auction in 10 days. I have a couple questions

1) Is it too late to try to do something to get the house?

2) Is it worth trying to get? The market value is around 260k, the owed amount is 228k. I have been in the house and it is in reasonable shape... merely cosmetic. While the equity is a huge plus, based on the amount owed, it would probably not cash flow if we rent and hold (assuming it was financed in any way). I believe rent in her neighborhood for the size house 4/2 would be 1300-1500/month. Maybe it would be a wiser flip?

3) What options do we have if we can still try to get the house? How can we work something out and with who? In situations like this is all cash necessary? Financing? We are running out time, I'm sure. 

This is not something I have ever encountered, but I saw a possible opportunity, so I didn't want it to go by without at least asking for some advice. Thank you in advance!