Possible Sub-To, interesting situation

[Andrew Smith]

So, I've found a home going to foreclosure on March 7. The ARV is about $147k (verified by a realtor friend who actually lives in that neighborhood). I do not yet know all of the financial details as I am in preliminary talks. The wife on the mortgage said she thinks they owe about $140k on the mortgage, which obviously means there is no equity in the home. I'm not yet sure what reinstatement will cost or what their monthly payments are.

Here is what I do know. The two owners are married but are currently separating. The wife would love to not go into foreclosure and save her credit whereas she doesn't feel that her husband could care any less. He does not have any family in the area and has basically lost everything since he lost his job a few months back, hence the foreclosure.

So, I guess I have multiple questions.

1)What would be my next course of action?

2)How would you attempt to speak to this man and open negotations.

3)From what we know, it doesn't seem like I should really offer them any money beyond reinstatement and maybe paying closing costs. There is probably about $2000 worth of rehab, its in quite good condition, hopefully it stays that way!

4)Any other helpful hints or advice would be greatly appreciated.

I've got 28 days, so there is time to make this work.