Or, depending on your marital status, find a roommate and split the rental cost to save money on a SoCal home.

This act prohibits discrimination on the basis of the following: RaceColorReligionNational OriginGenderAgeFamilial StatusPhysical Or Mental DisabilityIn some states, this goes even further to include sexual orientation, gender identity, and marital status.

@NaDean Bowles In a very weird kind of way it does;  but hey... what's a single guy doing talking about marital problems?

@Josh Prince, Where to begin...The guy in Chicago who used his son the attorney as his QI and had a 3.2 mil exchange disallowed.The guy who let his friend hold his money as QI and then his friend got into a divorce with the proceeds tied up as marital assets.The lady we were going to do an exchange for last week who decided to save $750 and claim on the settlement statement that the seller of her replacement property was really her QI.  

Understanding and finding the niche that fits you and your personality is important, or you may end up being like the countless others that jump in, and realize they didn't factor enough expenses in, hemorrhage money from day 1, and sell cheap in 4 years just before marital relations dissolve.          

The rules are black and white as to the 2 of the last 5 years as your primary residence that you can have a gain of 250K or 500K tax free depending upon your marital status.

You will also need your grandfather to sign a letter signifying that it is a gift and you don't have to pay him back.Of course you could always season the money to avoid those problems. 

I suppose forming an LLC is one part of it, but there are other considerations as well (e.g. your marital status, insurance policies, 401ks, etc.).

Sounds to me more like a marital issue than a financial issue.

The attorney likely can't tell you if they actually represent the client outright, but if you reach out or have your attorney reach out to either or both of this couple's divorce attorneys and mention you might be able to propose a solution to their marital debt on the mortgage (assuming the mortgage is held by both husband and wife), you might be able to work out some sort of deal whereby you bring the loan current and assume the note - if permitted under the terms - until you're able to secure financing to pay off the entire balance (refi, investor/partner, etc.).Their attorney might also be able to offer creative suggesting if it means more money in his/her client's pockets to pay the legal fees or help finalize the divorce.