If you can purchase this home with private money or seller financing and get a $110k loan, then you could do a rate/term refi right after so do a 90 or 120 day note to secure the property and get it in your name, then refi into long term debt using the full appraised value. 

I recently bought a commercial condo (retail) and have been going through hoops with the seller (developer) to make changes to make the space ADA compliant. 

I've been reading more about subject to and here's what I've learned:-Good for sellers who are off market-Have low to no equity-Have a mortgage with a low interest rate (less than 5%)-Be absentee or out of state (vacant property, or have a tenant)The buyer would then take over the mortgage payments, and have the seller sign the deed over to the buyer.

You could force the seller to bring it up to code before the sale is complete as one of the contingencies of buying it, let them deal with it.

But I have never met or talked to him personally.. just like most sellers never talk to the agents that bring in the buyers..

LOTS of sellers got burned back during the foreclosure crisis with Sub2 deals. 

Since it's rare to find a buyer, the agreement expires and you have a willing seller to negotiate a deal with. 

The seller then can sue YOU!.

These people have been labeled as "motivated sellers."

He is open to seller finance with 0% interest.