Deal Makers, Could You Help, Please?

FMV - 125K Repairs - 8k Owes 3 payments of 750/month (2250+late fees + others) Has a 1st - 82k 2nd - 25k (HELOC) Owner wants 5k? The comps are at 125-129k ---------------------------------------------------------- I am planning to short the 2nd ; My justification :.82 x 125=102.5 102.5-15k (repairs)=87.5k so offer the 2nd 87.5 - 82=5.5k and pay off the 1st. Is this a deal? ---------------------------------------------------------- What other way can this deal structures???? Thanks in advance