Possible deal #1--need some help

[Dan Miller]

I got a call today from one of my bandit signs. Here are the #'s. Tell me what you would do please. I'm a newbie and feeling overwelmed and scared:

Owner is in preforeclosure and 5 payments behind. She has about 15 days to the auction.

Estimated home value (unverified): $400k
Mortgage amount: $349k. It's a 5-year ARM that is fixed for 3 more years.
Arrears: about $10k
Monthly PITI: $2,371
Avg. rents in the area: $1800-2000
Willing to sell for what she owes.

Relatively new SFH, 5BR,3.5BA needing know work at all. In great shape.

Please help. I don't think there's enough equity here to do much since I can't do a cash deal, and the rents won't cover the mortgage payments. Please advise.

Thanks,
dan