Super motivated absentee - 20% Equity?

[Clayton P.]

Hey folks,

I'll be super brief. I have a 75 year old woman across the country, who is dieing to sell her home in my market.. it's in Preforeclosure, & its a COMPLETE gut, total rehab. She owes roughly 100,000 with about 25000 equity. The person handling this on her behalf, her grandson, is willing to give me whatever I ask, just as long as I can avoid the foreclosure and save her credit. He told me to contact HUD to get the payoff amount and the figure she'd need to pay just to get current again.

How do I handle this? I was all pumped, walked the property inside and out, its in terrible shape but ARV is 130,000, needs at least 70,000 repairs. Then it dawned on me, wait how can I wholesale this to someone else if this thing isn't even close to free and clear?

I know its a thin margine, but I'm about to schedule an inspection on the foundation and underground tank sweep, which is $525.00. I won't do the inspection if theres no way to profit off this.. and obviously, being in the shape it's in, it's no candidate for a tenant-buyer, lease option situation.

Help! :)