Need help structuring a deal

[Martin Zagrzejewski]

Hey BP,  

Need help on structuring a new deal I'm working on but haven't inked yet. It's a SFR 4/3 2 car garage in a nice neighborhood. The seller owes about $150k on it but it comps out about $240k. They are being foreclosed on by the bank in about 15 days. They are 4 months behind on payments. They are desperate to sell but I'm wondering if I can help them out in some way. If I follow the traditional model, I couldn't offer much because I don't want to go above 70% LTV. I haven't yet looked at the house due to scheduling conflicts but the seller mentioned there is some water damage and a missing water heater but I don't know how extensive the damage is yet. That being said, if I wanted to structure the deal where we could keep the financing in place subject 2 and I could stop the mortgage foreclosure from happening by say paying off the missing payments, is there a way to make that work? I could rehab the property and then they could potentially get more on the backend of the deal. Just not familiar with sub 2 at all to make that work. How is one protected once payments are made? I'm still going to look at the property just haven't made it yet so please don't ask me about repairs. The insurance adjuster they had look at it gave a figure of about 12k.