CT Title 19 House Purchase

[David Wolber]

So I found this property in South Eastern CT that was a perfect fit for my application.  The town is rural so they don't really have a commercial zone per se, but with special permit they will allow the business my partner is looking for.  There used to be a dirt bike showroom and repair place on the property.  The shop section has a "commercial" space attached to the house.  So technically it is a residential house.

After we walked the property yesterday, the selling agent informs us of the following:

-The house is under CT Title 19 (Medicaid)

-Because of this fact, the nursing home the current owner resides in has a say in the selling price as well as the state of CT

-The house is a moldy mess and hasn't been lived in for over a year.

-All the copper in the basement has been cut out and sold (not sure if a break in or family)

-One of the foundation walls is crumbling

-The nursing home has rejected several offers including one over asking price.  They refuse to sell at under the town's appraised value of $151k (it's listed for $125).  It has been on the market for 200+ days.

-The appraisal was done two years ago when the house was somewhat lived in so doesn't reflect the current condition of the property.

-The estate has no money to fight this.

So all the mold, copper and structural issues are actually not an issue for me since I was planning on gutting the place to put the salon in, however I have no intention on telling the selling agent this!

Has anyone ran into this situation?

I have reached out to my lawyer to look into it as well.

I would think a third party appraisal chosen by the nursing home would clear up the price issue, but according to the listing agent it seems they have no desire or care to entertain anything. 

Thoughts?