., and for many that is motivation enough to not sell it the traditional way but you need to be very, very VERY clear with her about this and have her literally sign off on the fact that you are entering this arrangement as an investor with the intent to profit off the property by either wholesaling the contract, fixing the house and flipping it, wholetailing it (you personally buy it then immediately list it with a realtor to resell it), or keeping it for a rental... since you intend to purchase way below market value then be absolutely clear and prepared that she may be fine with it.... now, but that could very likely change in the future.Good luck!

In the same breath I will also say you have got to seek to create win-win situations, you can't be the only one winning in a deal it won't work.

As a Bankruptcy attorney, I would simply have intervened in the Bankruptcy suit, made it a contested matter, and litigated the intent of the attorney in declaring bankruptcy.

It might be okay if you got the loan and deed in your partners name and the intent is to actually occupy the home for a period. 

You can do it because you're replacing the windows because they're old and useless, you're not replacing them with the intent of passing a lead inspection.

I only stress this because in my experience there really are no bad people, no one is really trying to scam you and you can assume everyone has good intentions. 

They had no intention of buying.

Thanks Nick,Totally agree, and that's my intent, in fact been there for many months now ..... but the million dollar question is - is that enough for the IRS?  

Their true intentions come out eventually.Be sure to read through the rules of the forums here.

For the sake of clarity, I have ABSOLUTELY no intentions of throwing away the remains and also have no problem storing them until I can find a resolution to this problem.