Sub 2 purchase with 2nd lien from Hardship Refinance

[John Horner]

I have a lead on a lady who wants to sell on a sub2. She did a cash out refi before 2008, then when the market crashed she was underwater and couldn't pay so she did a hardship refi which took $21k out of the payment, but created a 2nd lien on the property for that amount.

My question is this, is there a way to make a sub2 work without having to pay off the 2nd lien before the transfer of the deed?

I am new to sub2's but there is some equity and cash flow here.

@Brian R.