I am thinking maybe a L/O ( tricky in Tx) or a Wrap.

ahhhhhh, it is clear to me now - just clicked on your signature link, and lo and behold, you sell a real estate analysis software package that probably does what your recomending my spreadsheet to do.

A LO might work, but we'll see once we look at all of the numbers and how much they would qualify for on their own.My family is on board because they know I want what's best for my grandparents.

Current LO's correct me if I am wrong, but it's just not going to happen.I was an LO for three years until this past august.

If you've got one, maybe two, folks involved in the estate, OF/LO can be an attractive option if all heirs are currently solvent and don't really NEED a lump sum of cash.  

Lo and Behold no one else bid although others were there bidding on other properties.

I make my LO's for 3 to 5 years to give the person time to qualify and sometimes they never exercise the option, move to another state (life changes) and I sell it on Lease Option again.Just make sure the Lease is one agreement and the option is a different agreement to comply with Dodd-Frank which is simple enough to do.

You are describing a purchase subject to, a lot more than a LO.  

NY has the SONYMA program: http://www.nyshcr.org/Topics/Home/Buyers/SONYMA/Lo...  

The seller took a higher offer and lo and behold, the house fell out of contract, likely because an inexperienced flipper hadn't properly estimated their rehab costs.