If it is worth $430K, pay more than they owe on it giving them some money in their pocket to get started again and you're still getting a good deal. 

Is it worth while to do?

It's important in RE to view both sides of the transaction's perspective.  

A successful investor's time may be worth hundreds of dollars per hour.

Let's say because your seller knew she didn't have full title she sold you a house worth $200k for $75k and that's the amount of insurance you purchased. 

@Dionne Ladson The proof of the pudding is in the eating.True private money (e.g. a high-net worth at your local REIA) is going to be more flexible, but make you vet them before diving into a borrowing relationship.

To go even further, virtually anyone in real estate ought to find the prospect of more people, at least from a financial point of view, highly desirable.

It isn't a 'rule' as much as it is a quick and dirty way to determine if it's worth the bother to look at it further. 

Jay, are you tapping “view last reply?”

There are several ways that people can view as being taken advantage of.