My wife has been using them in hopes of settling student loan debt she has.

For that reason, even if when hes finally "settled" I'm not sure I'm interested in having him be a part of anything I'm doing. 

Any cash left after settling all notes (and paying back family) can be withdrawn (up to 75-80% LTV).6.

We are waiting for the taxes to be settled by the county and our cash to be free.

I see a 400k comp pending that is 16x56 and 2200 sqft and I also see another 2000 sq footer settled at 365k.

The house clearly had some "settling", the price was low for the market, and the house was 50+ years old, so even though there was clearly some foundation movement "in the past", it was a solid purchase. 

If you made her aware of the listing mistake and she still cant afford the price I would not settle and give her a discount. 

@Matt OldseyRecent comps settled in 425 - 450 range (6 months)

I put an offer on the property and looks like we will settle sometime in the next couple days.

The current plan is to go straight into a rental, then begin the process of home buying (primary residence) within a month or two of getting settled, knowing it could take several months to find what we're looking for.