Stepping in 100% to your wife, might clear up some of the mixed feelings about borrowing money from someone who is right now only "almost" family.I think as with any business, the human element is the most important.

Looking at the cost of the liens compared to the mortgages, it would be absurd for the bank not to purchase the liens.

I can’t seem to get through to a human.

Humans Don't Suck!!!

That kind of human being will never have the mentality to buy a house...so...I won't be working with them.

Here are the basic details.The ARV of the house is between 395,000 and 410,000The estimated cost to repair is 100,000-135,000(I know that is a big gap, but it accounts for some repairs we need to open up walls to confirm)The current listing price is 359,000The price has dropped from 420,000 The house has been on the market for almost 3monthsIs it absurd to offer 200k for the houseAlso is there a way to make an informal offer to see what the Owner thinks of the offer or so you have to just make a formal offer?

Just proposing a way to use this caveat of human nature to your advantage all the time, not just "if" you are not he short end of the stick.

Most people are very quick to dismiss spending that much as an absurd amount to pay for something you can learn elsewhere but there are many niche areas (finance, notes, restructuring, even negotiation techniques) with one little tidbit that can easily make you an extra $2000 in a deal let alone the $200000 you make off that one idea over a lifetime.

They are human to human relationships.If you are wondering what areas that are a hassle and might be solved by software, here is mine.I have several different on-line data sources I get info from... foreclosure data services, county records, MLS, etc.

@John Moon  I can relate to your mixed feelings; however, the issue of sellers asking for ridiculous prices for their buildings is never going to go away, as this is intrinsic to human nature.