Pre-Foreclosure Deal Structure Advice

[Ashton Fry]

Pre-Foreclosure property. Seller is behind $24K and the Bank states buy out is $491K. Seller purchased home for 340K in 2005 so that buy out seems very high. Monthly payment is currently $1700. Property value is estimated $550K and property could rent for +$3000. Repairs estimated $5K. Seller not interested in monthly payments (Sub to) on first approach. Does not have family or friends that can help. Did not want to list with agent. Gave up and accepted foreclosure and submitted for bankrupcy. Seller just wants to get it out of their life.

1. How can I verify bank's buy out?
2. Is the bank buy out negotiable?
3. Any advice on how to structure this?

Thank you in advanced!