Is there a way to make this deal happen?

[Jon Mason]

I have a relative who owns a house that I could get for 70% of ARV. It has a foundation issue that needs to be fixed, but aside from that it just needs some lipstick. It's a great property in a great part of town that's going no where but up. The problem is, my relative is going through a bankruptcy and he said the "paperwork has already been filed with the bank", I guess to surrender the house to the bank? I called the bank and nothing is on file for the property, so it's still evidently in the works.

I talked to the homeowner about purchasing it from him, but he said the house is tied up in his bankruptcy.  He had the house on the market for a while, and someone (the bank maybe?) told him to to take it off the market because of the bankruptcy.

The homeowner doesn't seem to have a lot of details or understanding about what's going on, which is compounded by the fact that I'm new to this as well, so I'm not sure how to approach it.

Trying to figure out how I buy the property for a fix and flip.

Any advice would be greatly appreciated.