Deal Structuring for Back Taxes in California

[Shannon Tayllor]

I found a perfect property - for personal residence that I would really like to own. Need some good advice.

List price is $575K and three recent sales of the exact same townhouse are in the $515 to $532K range, selling in the past 6 months.

Seller owes $415K on a 1st and 2nd mortgage. House is empty and there was a death in the house sometime in the past year. House needs some painting, carpet, yard clean up, etc.

Seller owes $28K in back property taxes and is not current for this year. Taxes owed for 2016/2017, etc.

Not sure if the mort. is current or not at this point and the Seller lives out of the country. The property is not in condition to show, dated, built in 1990. Possibly behind on HOA dues as well.

My only strategy was that possibly I could assume the loan, pay the back taxes, the 2nd and the real estate fees and agree upon a $500K sales price and work a deal with the agents to pay them commission on $500K. (I sourced the deal)

Does anyone have any creative financing deal options that I could offer the seller to get out of this mess without me having to pay $570K for a property that might only appraise for $535K? 

Thank you BP community for the advice.