We have about 10,000 in debt/school loans between the both of us.

Pay off the debt(mortgage) and increase cash flow slowly.

Why do you want to be responsible for a loan where the asset is just enough to cover the debt?

This place is near the highway and I want to eliminate as much road noise as possible.

After any homestead allowance amount (depending on the state he is in), the BK trustee would definitely sell the property to pay off debts.

Do commercial loan so it doesn't show on your personal credit and will not affect your debt to income ratio moving forward.

Even if they're willing to settle for $2k, and that's worth it for your situation, I would rather offer them $4k in pre-paid HOA dues to cover the next X years in exchange for wiping out the back-dues - rather than paying $2k in expenses for someone else's debt..

Also homeowner may be looking to convert to a chp 7 if things didn't work out.If they filed a chp 7 it'll be in the paperwork if their confirming or reaffirming their debt.

For the mortgage debt, you have:Debt: ($60K, 30 yr, 7.125%): $404 I would be putting down 20%, so the mortgage amount would be $48K.

Taxes, insurance, debt servicevacancy rate, repairs, mantaince, utility bills ( a vacant unit in Indiananeeds heated in the winter to prevent damage).