Off Market Private Acquisition

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Bigger Pockets Community  - need some guidance! 

There is a a vacant property next to the property I am closing on this week.

I had a broker run a title report and it shows the house has a mortgage with Wells Fargo with $105,000 in debt remaining and no liens. 

The property tax records give me the previous owners info. She no longer lives there but I spoke with the neighbors and they claim she is still paying the property taxes on it. I am going to call the township on Monday. 

A broker I know gave me his opinion that the lot itself was worth ~$70,000. The house is a 2 bedroom, 1 bath bunglow at 1000 sf. It is in pretty bad shape. I need to walk through it but would estimate ARV would be $200,000 - $210,000.

My question is how you would move forward? I actually found the previous owner through Facebook. I know its not a business like way to contact but its the only way her name came up and its definitely the same women. 

Because the bank has not legally foreclosed, can I buy the property from the previous owner? If I bought it for $106,000, the previous owner would pay the $106,000 to Wells Fargo and then pocket $1000. 

Could I also work with the seller and Wells Fargo to try to buy the loan at a discount? Could I offer like $65,000 - $70,000 for the remaining debt on the mortgage? Would I then have to foreclose on the property?

Thank you very much for your help. I want to aggressively pursue this opportunity.