Need help - creative structuring for a probate deal...

[Nicole (Dunlap) Pendergrass]

Need help on a probate lead that called from our direct mail campaign:

The property was in probate about a year - the will was contested so the executors (2 brothers) just got full posession of the property in March. There's a reverse mortgage of $160k and the lender just started foreclosure proceedings since the loan provider has already given about a year grace period - the loan was technically due last year when the owner passed. It's a 2 family and one brother lives in a unit and the step-mother lives in the other unit (step mother is the one who contested the will). The brothers are resistant to accepting our cash offer of $220k 1)bc their parents owned the house for 30+ years and they dont want to "give" it away and 2) they have to split the proceeds with the step-mother 3) the brother needs some more time to move out - find another place, etc.
The Property is worth about $400k.

Just to help them come up with other options, I discussed them doing a re-fi to pay off the reverse mortgage and that would stop the foreclosure plus give them time for the brother to move and to sell for a closer to market price. They explored this option but apparently the step mom has to approve a new mortgage/refi bc she's named as a permanant resident/tenant on the will.

WHEW! Got all that???

Anyone out there have ideas other than our cash offer or a re-fi that could help them??? We discussed owner financing options and I think he will be open to that if it gets him a higher price... Any ideas on how to structure an owner financing option?

I was thinking pay enough cash to pay off the reverse mortgage and the balance of the purchase price have the owner hold the note.... but how much should I offer in this scenario???

Thanks for any input and help!