Preforeclosure, owes what home is worth but very delinquent

[Stephanie Cabral]

Hi all! Looking for advice on how to work with a homeowner who is about 2 yrs in arrears. House is worth $250k, her loan is just about that but she's $54k in arrears. Her monthly payment is $1300. House is a 4/2 in a desirable B+ location with good curb appeal and rent values about $1800-1900. I think it'd be a great candidate to lease option to a potential buyer if I can control it but there's not enough equity for me to purchase it and put 20% down.

I haven't worked with banks in a preforeclosure situation before - what is the likelihood that a bank would allow me to take over payments and if it's possible, what is that called/how is that structured? Could it be like an internal sale?

To my BiggerPockets experts, please unleash your collective wisdom on me...GO!

I appreciate your thoughts in advance!