Deal Structuring Help Needed!

[Jill Md]

Hi All,

My Experience: I have been strictly a rehabber for the past 12 years. In the past 6 months I have decided to go full time with investing, so as far as deal structuring with creative financing, I have little to no experience, --other than what I have studied over the years.

Potential Deal: I posted "I Buy Houses" type signs, and just got this response tonight.... The owner is in pre-foreclosure: 51 days, he has until mid February to do something (90 days/AZ) and moved out of the house a month ago.

The homes ARV/retail price is about $250K, (home is already in good shape and mostly remodeled)

His original purchase price was $114K. Refinanced a few times and has taken all the equity out of the property, used part to make improvements.
Owes $268K

Monthly pmt $2,030 with a conv. 30 yr. fixed @ 9.99%.

Owner wants $2,000-3,000 and to walk away.
Open to short sale
Open to creative financing
He is going to get back to me with the exact amount he is in arrears in the AM.

He contacted bank to see if they will work with him and they said they want full note value ($268K)

Owner wants/needs to do something fast.

Suggestions on what type/s of deal to structure?, And the very basics of how (I can figure it out when I know what type, I believe) would be greatly appreciated!
Thank you SO much for your suggestions & help :) !!

(FYI: I have approx. $6-7K in cash to work with at this time).