How would you approach this deal?

Foreclosures, Short Sales, Tax Foreclosures
1

SFH 1150 sf, 2bd/ba, built 1950 balance owed 190K, including att fees & back payments lender wants 210K. They will not discount. Auction date 03/14, seller said it needs carpet, paint, and yardwork. Assuming this is true (I am going to look this afternoon) CMA indicates FMV @ 255K in nice shape. It looks like SS is not an option, due to the lender. How would you structure this deal? I am still a noob in this area, learning daily. She has a bad mortgage @ $1450/mo.

I could get a new loan and cash out as much as possible,
(middle FICO 720) fix & sell. Another option, bring her current and get the deed? If I did this what is my best exit strategy, sell and cashout or L/O the property somehow? How can I protect myself in this senario? It would be nice to get it from her, do the repairs and flip for cash without getting a new loan on my credit. I have access to HML for the project.
Thanks!
Carl

2

I just got back from viewing the property. The home is in decent shape, it needs paint, yardwork, and the hardwood floors need a little attention. It was better than I thought. I went through the owners file and as of 01/10 she owed 202K. The bank is willing to do SS, but the previous investor offered 135K. The bank sent a letter saying it was too low, and the inv told her the bank won’t do them. I got her to sign a POA and called the bank. All I have to do is fax a few things over and they will give me an answer or counter mon. We’ll see how it goes. Still looking for opinions! I will offer them 157K at first.