Burnt out house, facing foreclosure-what would you do?

[Mark Gibbs]

I don't know what forum would be best for this but I am hoping I can get some suggestions here.

I have found a parcel with a home that has substantial fire damage. Owner owes somewhere around $115K on the home. Insurance payout coming. The guy's current home may be considered involuntary confinement, sounds like this could be an occasional place he visits. I would like to offer this guy a few thousand for the house and hopefully collect on the insurance proceeds to demo the house and hold onto the lot for now. 

The owner is behind on payments, facing foreclosure. I would like to get possession somehow, advance payments on the owners behalf until the insurance settlement comes in then pay off the loan.

Any suggestions as to how you might approach a deal on this?