Trying to help the elderly out

[Jamie Dzierwa]

Hello everyone, so I am looking for some ideas on what you investors think about this situation or if anything can be done...

My 86 year old grandmother lives in a 4b/3b home that she owes $70,000 on probably around $200,000 in equity, and in a good market could get $350,000. The house is way too big for her and she wants to get rid of it. As we all know in this market it is very hard.
Now, right across the street from where I live their is a perfect ranch that is a 2b/1b pre foreclosure. We have spoken with the owner, she has it listed with an agent and she is asking $159,000.The inside is gutted completely, so needless to say its a big rehab project. The same ranch next store is listed for sale for $150,000 . We offered her $130,000 for it but she said no she is looking for $150 to make some money, being she still owes $125. Being a little greedy if you ask me, but anyways is there any ways around this to where maybe we can convinve her across the street that she's not going to get $159 and possibly maybe do a rent to buy with my grandma's home now and possibly pull the equity out of the house to buy the ranch if that is possible?

Any thoughts or ideas would be greatly appreciated.