Multi unit commercial wholesale opportunity

[Brad Pickett]

So this came across my desk recently:

A motivated seller contacted me recently because I have expressed interest in her buildings in the past with a bulk sale of four building that run consecutively together.  These buildings are on the on the main road in town and less the 100' from the intersection with the other main road.  It is a prime location downtown in a small rural town of about 15,000 people and and area of about 60,000 people.  These 4 buildings she is offering are two story very old (circa 1930), brick and in somewhat disrepair.  One of them has been substantially redone while the other three are mid to strong exteriors and gutted or needs gutted interior.  Roof on the one is good while on the other three has been repaired but will require more work.  They are open retail bottom floor 3600' and chopped up or residential upstairs 3600'.

The building are 120'x30' and the issue in this area is no parking.  The four buildings combined sit on a modest 12,000 sqft lot.  Currently that entire lot is taken by the building with only alley access and frontage, parking only on frontage.  

Highest and best use may very well be to tear down 3-4 of them and throw a sign up "build to suit".  My PP is likely to be 240k and potential resale from the info I have so far (dependent on strategy) would be 250-320k.  I could tear down three and redo the TEN one bedroom apartments in the top of the 4th best condition building.  Or an investor could also figure up highest and best and just buy it.  The economy here is booming and we have a housing shortage with many new factories moving in. 

The seller is comfortable with me wholesaling and making money, doesn't really want terms at this time, even though all building are free and clear.  HERE IS THE KICKER one of the buildings is going through foreclosure with the seller being the note holder.  The current owner is a deadbeat and has little to no chance of getting caught back up.  

I would LIKE to be able to contract these four buildings somehow, maybe a PSA to include the 3 properties currently owned and the note of the fourth... , so that once the foreclosure runs its course I can have and end buyer identified (maybe me).  I know the general answer is you cant do anything until the foreclosure is over, BUT I have a feeling there is a LEGAL way to do this and the people on BP would be the ones to ask.   

Normally I would probably just let this one go but this is an area of town that drastically needs to be renovated and new business' brought in.  These type of situations are the reason I am in real estate, an opportunity to use creativity to solve problems, help the community, help the seller, and make money!

I am open to all comments and ideas.  What vehicle could I use to best create an interest in this property (ability to market) while this foreclosure finishes up?  Maybe just and option listing the three properties and the note?  A PSA?