ruhppy2

Here's the deal:

Father in law just fell and broke his hip. Medicare won't pay because it's only a fracture, not a complete break. They are now frantic for monthly cash flow to pay for medical bills and long-term care for FIL.

Their home has been for sale for over a year - it is out in a very rural area of CO, handyman built, odd layout, etc. but with two acres. FMV is about 180 and they owe 40k. My DH and I want to buy it so they can move on and get rid of their $1k monthly payment. They don't need to have the cash from the sale of the house anytime soon.

I've spoken to my CPA. If we buy it for $160 from in-laws, and we hold the house for three years, they can forgive up to $56k per year on the debt. So if we hold it we won't have capital gains when we sell it.

Inlaws just need to get rid of $1k/month payment and don't need payout of home right away.

Question is, can we get a loan for only $40k to payoff their loan and have inlaws "finance" the rest? How far will a bank go out on a loan that small? Are there other alternatives to finance it?

Thanks MUCH for any insights you may have!