Purchase / Foreclosure Scenario - Advice

[Jake Boss]

Hello All!

I wanted to run by a scenario I am looking more into. I came across an HOA foreclosure in an awesome area, I have been looking at for some time. The amount due to the HOA association is $9K. I understand that in this case, the 1st lien which is the mortgage will not disappear as the winning bidder will have a due on clause of the remaining amount (state is Florida). The property was bought only 2 years ago with a loan amount of $183K over 30 years. Market value currently is around $250K.

I have been doing some research looking through the case dockets, etc. and it does appear the the couple is going through some hard financial times currently. Possible health issues / lost job, etc.

Instead of waiting for this to go to auction I was thinking of reaching out to the couple personally to try and work out a deal.

There are obviously multiple avenues I could go. I have thought of offering to pay the HOA fees off in full to cancel the foreclosure and then give a simple cash offer OR try and go the seller financing route. If bought, I don't want them to live there as I would plan to renovate and rent myself.

Assuming the left over mortgage lien is still around $170-175K that is more than id be willing to pay cash for, hence my thought of seller financing. Unless they did the process of a short sale (I am not to familiar with how this works or what qualifies per the lender)

I was curious to see in this scenario how you would try to structure this? 

Thanks!