Had a seller that was 2 months late on his mortgages. Took 4 weeks looking at my lease option, sending it to friends, lawyers and praying about it before signing it and bringing it to me.( Tried to get it signed a couple of times earlier) I handed him a check for $20. He asked when I was going to make the mortgage payments current? I told him we haven't had a contract to market the house. He walked. I hate to see this go back to the bank and I know some people just are not ready to get out. When do you think it makes sense to catch up lates? Sub 2 or lease option
I would never make up late payments on a lease option, you don't own anything, you're only a tenant.
Have you suggested the seller contact the bank and see if they can get the payments added on to the end of the loan? They're only 2 payments behind, no need for them to throw their hands up just yet.
I agree with @Doug Pretorius
Your job in creative real estate is to show all of the options.
I use a 3 column method,
Col 1 Col 2 Col 3
Sell w Agent Rent and Wait Sell on Terms in (Your State)