Indianapolis Subject 2 Deal?

[Ben G.]

I was contacted by a lady in Wayne Township, with a house she want's to sell in Clermont a small town west of Indianapolis. 

She is 4 months behind on her mortgage.  She lost her husband last year, and she has been unable to make the payments on the house.  The house is vacant and she is living somewhere else.

The mortgage balance is $110,000

The PITI payment is : $810

The rent rate is: $1,100

The house was listed for $125k and sold for $117k two years ago.

It's a 3 bedroom 1.5 bath with full basement, and attached 1 car garage. The house is in great condition with good mechanicals, and a lot of updates.  

There isn't enough equity for me to wholesale it or flip it.  

Would this be a good Sub2 candidate if I sell it on a lease option?

Reasons for yes, reasons for no?