Loan with deferred principal balance

[Todd Willhoite]

Looking to help a person who has a loan that went in foreclosure where they have about $50k principal and interest due PLUS about $25K Deferred principle, plus other costs which make it add up to about FMV of the property. If person sells they have to pay all the money back to bank at closing (and not any equity in it for an investor). Although foreclosure has begun, can person sign a lease with an option to purchase, I pay the amount that is back owed to bring the mortgage payments current, and then lease from borrower for monthly payment to bank? I am thinking a low monthly payment where property is sub leased to tenant paying fmv rent that lives there might make financial sense (spread between rent received and mortgage payment). I believe the loan and deferred principle where made under a government program that requires an owner occupant, so once the borrower moves out, then maybe the loan is called due? Anyone have experience or advice on this situation?