Seller upside down - whats my next move??

[Josh Chappell]

These are new ground for me. I need the advice of the pro buyers on here. Here is the situation:

- House is worth about $55,000 in its current condition and needs $30,000 in repairs - ARV is around $130,000

- She has a USDA Loan balance of $60,000

- She has a HELOC of $20,000

- Monthly payments for both loans are around $1,000/month

- I own the house next to hers and its a great rental and would like help her out with this situation and get a good deal (win-win) 

I have never done a "subject to" deal or any other super creative financing. I need some advice on my next steps of action. This lady has gone through moving, getting divorced, facing current health problems and needs my help. Please help me help her. 

Thanks in advance!