Stumped on what to do for this motivated seller with bad credit...

[Stacy Mellish]

Hi all, this is the first time I've experienced this issue so am hoping that some of you guys may be able to provide some insight or an innovative strategy that can enable me to help the owner of this property out... 

I had a motivated seller contact me with a house in Austin that they don't have the money to fix. The house definitely needs some levelling work (about $3500) and updating (about $10K), but all in all for $62,500, it is a great investment so I put it under contract.

Now that the house is in escrow, a few problems have popped up. First off, one problem is she filed bankruptcy when her husband died and the process isn't going to be finalized until around January (when it comes to the current house, she has power of attorney so that is not the issue). The second issue is, she found a house she's wanting to and needing the ability to move into when this property closes, but was denied today so she's saying she has no other option but to stay in the current house despite the work needed. What, if any, are some of the options that I can send her way?

Any and all feedback is greatly appreciated! Thanks!