Sell the property and mortgage would get paid off and she would get some cash.You also have the option to sell the property subject to the existing mortgage and the existing contract agreement, assuming you could find a buyer.

Instead of buying rental properties on the MLS (which require mortgages and a high downpayment), perhaps I may suggest that you look into the "subject-to financing" niche, and acquire properties with built in financing.

Have you looked into the "subject to financing" niche, or creative financing?

@Ned CareyYou're right there are few good books on the subject.  16% solution is one of the best. 

If subject to attorney review, s/he may be uncomfortable if non-standardized forms are used.

hey guys can anyone help me out with this question, if I do a subject 2 with a seller, do I have to get new insurance on the property, all feedback will be appreciated thanks

She's had a lot of success in this niche and has written many articles on the subject.

If you can't draft a lease option, subject to, subject to with a note, when contract, wraparound mortgage, etc., he's not your guy or she's not your gal.

I think a great way to begin using BP is to read the Bigger Pockets Ultimate Beginner's Guide to Real Estate Investing as Josh and Brandon did a great job with it.And now that you're here we'd love to see you be an active member of the BP community so be sure to set up Keywords Alerts for your local area such as "Plainfield" or "Mountainside" if you're looking to find potential opportunities for investing, education in a subject, or other members in your area.

I'll be searching for that subject here on BP of course, but any additional info would be welcome.