How would you structure this deal? Or not do the deal at all?

[Adam Gerig]

Ok so here's my situation I was contacted yesterday by a gentlemen who has a land contract that there is still 117 payments left on. The buyer pays him $500/month and has good about paying on the contract. He wants to sell me the contract at $36k with $58,500 left assuming the buyer doesn't refinance or pay early. What is actually owed is a little over $42k w/ 7% interest. I've got all the documents and contracts, but the reason he is selling is because his elderly wife has cancer and he needs to cash it out.

I don't think there's enough meet at a discount of $6k on the contract. So my thoughts were to offer him two different options.

Option 1: $20k cash

Option 2: Tell him I'll pay him $30k contingent upon me getting the buyer qualified for long-term financing through a local bank I know. I would think that the history of long-term payments would be appealing to the bank the buyer gets a lower interest rate and lower monthly payment. Seller gets $30k and I get to keep the spread. Not sure if anyone has any experience in this, but I have none.

I'd really like to help the guy and am wondering if any of you seasoned investors would have any insights or better ways you would do this deal. Or if it's a turd tell me that too :) Thank you in advance!