You can lose money and make money buying a passive investment.  

They might have bought to renovate then lose it, or they might have transferred it to their llc or somebody else  name etc... 

Drop it $60k and lose $30k, it’s still better than your offer. 

Since she is not paying rent and has no deposit to lose, and has a fully furnished, recently remodeled,  3br 2ba house all to herself, there isn't a lot motivating her to move.

Even experienced turn key operators lose money on some deals.

@Paul Johnson if the deal is worth you paying the fees and avoiding the headache and losing the deal, I would pay and learn from the experience.

The cash flow is amazing, but you must run a tight ship and understand the potential pitfalls or you will lose your shirt (and all your other clothes as well). 

Please, be smart, I can't tell you how many investors end up having to sell to be in a situation because they spun that wheel of destiny and lost big time, or others were able to pull personal cash to hold it and came to me to manage it from there on, after losing many thousands. 

They are listed so you can see them and bring a contractor, but they will all be as-is and many will be online bids.Too many new investors want foreclosures because they think the deals are better, but if you don't know how to estimate repair costs, do neighborhood and block values, and how to find oil tank, asbestos, sewer issues, and mold in NNJ, you will lose your money buying one.

With a contract it’s cut and dry in court, he broke the rules and now he loses ownership.