Guidance Needed to structure an offer

[Jay S.]

Hi BP family

I recently posted a few days ago about my potential first deal...well I have a little bit more of information to go on to ask for help on how should I go about handling this seller situation. 

A have a motivated seller who's mother has currently moved out of the home to a nursing home. The home is about to go into foreclosure and they really want to avoid this because they say that it will affect her medicare. He (son) has contacted the bank & told them that they have a buyer (me) & that they need an extinction on the time before foreclosure process begins, so that I can bring in carpenter to estimate repair costs. 

The house is paid off but the mother took out a 2nd mortgage for $50k with $45k still remaining, arrears of 5 months totaling $2680 but bank said they will take $1350 to bring the payments current status, plus a contract showing they have found a buyer, the monthly mortgage payment on the 2nd is $670. 

I finally got a chance to go see the inside of the house, from what I seen it needs some minor cleaning / repairs done (paint, carpet, broken mirror on closet door, wood floor cleaning). The house is worth inbetween $67k (tax assessment number) & $77k. It's a 2 / 2 built in 1962 renovations done in 2010 (worth $70k) due to a hurricane in the area that damaged the home, 2 car garage, jazzui deck on side of the house. I will take pictures next time. 

I would like some advise on potential way to structure my options to give to them. I really need to seal this one, they are HIGHLY motivated. Thanks everyone

[Jerry W.]

I would not do a subject to on this property.  medicaid has a 5 year look back period now on nursing home care eligibility, so I would get the property out of the name of the seller asap.  It might not hurt to get a market analysis in the as is condition from a realtor that factors in it is an emergency cash sale situation due to bankruptcy/foreclosure possibilities.  Even though the first lien is paid off get a title check done to make sure the paperwork was done to clear the first mortgage.