You said the payments - you can't afford.
So that's not an option.
Your uncle just can't "deed the house" to you - such a move would trigger what's called the "acceleration clause" in your uncle's mortgage which would "call the loan due" in full, when they found out this occurred.
If you have a car repo on you - you'd have to see about getting that off and have you credit checked. You'll also need low debts and good income with a work history of at least 2 years in the same field/line of work.
If you don't have the above - then getting a mortgage is not possible at this time, unless you can get a private loan - which will be very difficult also and the interest rate will be higher most likely.
Lastly - you, as a relative, cannot buy the home on a short sale, because they require "arms length" (no relation) sales as previously indicated.
Sounds like this is an opportunity that's going to get away from you.
Save up right now, get your credit straight, pay off your debts as much as possible, stay at the same job - and in 24 months, when they foreclose - buy it at the auction steps - THAT'S your best bet at this point. I believe you could get away with the "being related" thing too - when you buy at auction. Or at least there are definite ways to get around that.
Would the mortgage payment be similar to what the house would rent for? Not the MOST it MIGHT rent for, but the LEAST it would rent for, AFTER expenses. No need to read on if it does not meet BOTH of these basics. Everyone does this on some level, but don't let rational investment decisions be clouded by what you want, like signing and driving a car above your ability to pay for it.
If your Uncle is willing and able to help you do this, there are ways. IF your current savings and your current income allow you to bring the mortgage up to date, and you can share the house ownership with him legally, then a lawyer can draft an agreement where you go on the deed and then take over until you can refinance, and then remove his name from the deed. Please make sure that this is done with a written contract as you could end up destrying your ability to take in what might be an even better opportunity.
Here's what you do. First, you'll have to be able to make up the late payments. But if you can do that, you've got it made.
You purchase the property "subject to." That is, subject to the existing mortgage. The existing mortgage stays in place. Your uncle deeds the house to you. Now you'll own the house but the mortgage will remain in his name. There's no downpayment. No qualification. No hassles with lenders at all.
You make up the 5 months of late payments. (Borrow some of the money if you have to. Or your uncle probably has some cash, since he hasn't been making payments in 5 months.)
You say the payments "are a little high for me." You might rent out a room in the house to cover the difference. Or get a part-time job. Or if your uncle has a few hundred dollars a month, you say to him: "Uncle. I have the solution to your problem. I'll catch you up with the bank. No more letters and phone calls. And we'll be able to rebuild your credit. However, I would like you to pay the taxes--just the taxes--for the next couple of years." It doesn't have to be the taxes. You can ask him to pay the utilities. Or taxes and insurance. Or anything else that'll cover the difference between what you can afford and what the mortgage is. Basically, he chips in the difference.
So: You acquire the home by having your uncle deed it to you. You make up the 5 months of late payments. Then figure out a way to bring in a bit of extra money to cover the difference between what you can afford and what the mortgage is.
Hope that helps.
It looks like Loan Modification would be your only chance. The home is still going to be your uncles name. You should start working on building your credit back. This way you will be able to get a mortgage down the line.
Good Luck to you both!