How can I help my sister keep her house after her divorce?

[Erin Reynen]

Hi,

My sister is getting a divorce. Their house is worth about $400,000. They owe about $180,000 on it. He earns the primary income. She runs a daycare out of the home. She cannot afford to maintain the mortgage on her income and if they have to sell, she has very few income options.

He has a teacher retirement account in his name. Would that reduce his share of their home equity so my sister would get more of it?

We want to help out. We are currently approved for a $220,000 mortgage and have about $50,000 in cash.

What might be some options? Could we buy the loan from the bank or buy it directly from them? What other ways could a deal be constructed? If you think more cash or loan approval would be necessary... any suggestions?

Thank you!