That is not a pretty proposition.  

This is nowhere close to an attractive proposition from an investors standpoint.

The only thinkg I can think of (you can read up on it more too) is that you would come to them with the proposition that you will take over their payments, see what needs to be done to actually get them out of pre-foreclosure status, and see how much time you would have to get a renter or end buyer before considering the subject-to route.

Based on all that, figure out what the most you want to spend on the property is and don't go over it.Personally, I love numbers and love trying to figure out how to do a lot of these calcs but in the end, you need to figure out how you want to profit from the sale and then calc your value proposition.

This is macro economic issues, and as such out of your control.For an investor it sounds like a bad proposition IMHO.

@Eric Michaels i just want to prepare myself as much as possible before propositioning myself to someone and look dumb.

Normally renting is a straight up business proposition, however, renting rooms in YOUR OWN house makes it into a personal deal.

Don't lower your prices and offer them value they aren't asking for.If your value proposition is, instead, to offer a bargain basement price, only if they buy it from you using seller financing, I think you're going to have a much tougher sell to the buyers...they'll be too suspicious.

Further, we are bombarded by not so ethical or sound propositions on this site on a daily basis.

I am glad to be a part of this community and I am happy to give my propositions here, I am looking for a more comprehensible and current issues.