Short sale when Medicaid is involved

[Russell Phelps]

I am looking to purchase a short sale home. The seller is in a nursing home and her niece is her POA. After submitting a offer, I received a response from listing agent that they are working with bank but POA said Medicaid will not allow seller to pay any portion of buyer closing. Has anyone dealt with this Medicaid scenario?How long was the process?

House listed 79,900 

372 days ago

Price change 78,900 

6 months ago

Multiple offers denied (less than &60,000)

My offer 2 weeks ago 65,000 + 3% closing

Buy and hold.

Comps in 75-90 range

Any help would be appreciated.