Need some advice on a possible deal please.

[Lenny Reddic]

Hello all, I have a lady who just moved out of her house 1 month ago after filing bankruptcy because she was on a ARM and the payments just kept getting higher and higher until she couldn't afford the house anymore. She purchased the house in 2007 at 173k, and the house is only worth about 90-100k in today's market. She has already moved out but the bank has not yet foreclosed and the house wasn't destroyed.

She desperately wants the house back! The problem is I don't know what method to use to take control of the house. Do I try to buy the note? Do I try a short sale? Do I get her to quit deed the house to me?

Also the mortgage company's attorney sent her a certified letter saying it was gonna be sold on courthouse steps on oct. 7th, so she moved out on oct. 1st. I had a realtor friend look up the address in tax records and the house is still showing in her name on the MLS.

I understand there is no equity in the house so i guess what I'm trying to do is purchase the house or the note at a very discounted rate and then do a lease option the the old owner. The value I see in the property is that it has a built in buyer. I know this person so I know how valuable the property is to them. Please any advice at all would be greatly appreciated be it negative or positive.