REO Opportunity, Credit Challenged, Any Ideas??

[torryandamy]

I have come across a local HUD home in need of a lot of work. It is listed for $72k, as-is value $90k. With about $25k worth of work would likely sell for $145k+ (conservatively). I would like to go forward with this deal but there are some problems on my end.

I sold my own home a little over a year ago on a wrap just to get out from underneath the payments during a difficult financial stretch. The contract calls for the investor to make the payments through an escrow company directly to the lender. This of course violates the due on sale clause, but has not been an issue (yet). The problem is, he has made two payments over 30days late in the last six months, severely damaging my credit. Prior to selling the home I never made a late payment, and have never been late on my rent since selling either.

The HUD home is listed as available only to Owner/occupant, government agencies, or non-profits diminishing my ability to work with an investor financial partner, except through hard money.

What I was hoping to do was to find an investor who would buy the home and lease it back to me while I sort out my credit problem (kick the other investor in the @ss to get him to refi), and sell it to me after a year or two. Does anyone know if this is even feasible? If so, where do I go to find an investor to work with? If not, any other ideas?