Seller Upside Down

[Erin Foley]

I signed a WS contract with a seller this week....after which I discovered he owes more on the property than the contract dictates that I pay him: we agreed upon $85,000. He owes $89,000 in mortgage and loans, with ~$1000 in liens. Repairs needed are ~$60,000. ARV: ~165,000. It was a super-tight deal profit-wise for me anyway, but I assume I have no choice now but to back out?

Is there anything that can be done to help an owner in a predicament such as this?