Pre foreclosure confusion

[Mark Paes]

I have a son of a friend who has come to me with a pre-forclosure. He's 4 months behind on a 1st and 2nd mortgage.
Looking at the numbers, it does not seem to be a good property to flip to an investor. But I would like to give him other options, if there are any.

I noticed in another post, someone warned of the taxes that might come with a seller getting money back when they sell to escape a forclosure. My next question here is... Why do I see adverstisements claiming to give a seller money to start over when they escape a foreclosure. How does that work?

Here are my subjects details...
Comps give me an ARV of $203,000. (an above average condition could bump up ARV to $230,000.)
1st mort= $165,000
2nd mort= $35,000
Its a SF home. 1800 sf 3 bdr , 2.5 bathr

What options does he have besides catching up the payments or going into foreclosure?
Any input would be helpful.

Thanks,
Mark (a noobie over his head) :beer: