'Subject To' or Not to?

[Bob Couture]

Dear BP readers, Could use your creative minds to see what the best course of action is for this prospective client. Here is the situation... Motivated seller came to me through my website. They are moving. They asked for $208K for a 3 bd/1ba home in the Springfield, MA metro area. ARV for a house like theirs in their area is $125K. Some details... - they bought home for $169K - mortgage is now at $199K - conventional loan: 30yr fixed at 5% What would you do? Almost seems like a bridge to far for a short sale. Is foreclosure their only option? Could this be a good candidate for a 'subject to' deal? Any other thoughts/strategies? Thanks, Bob