Foreclosure & giving away a resource for SSI & COPES home owner?

[AMGP]

What is the name of your state?What is the name of your state? WA

I have a couple who are in foreclosure & want to sell their home.
The place needs a lot of work, & is not worth what they owe the bank. The bank knows it & they are willing to take less than what is owed so they don't have to take it back & fix it.

I would like to buy it & the couple is willing to sell if the bank agrees to the sales price.
This is a married couple.
He is on COPES & Medicaid with the state (& has been for some time).
She just was awarded disability (SSI).

Their main concern is that if they sell for less than is owed & the bank accepts, that they will have a penalty on his COPES/Medicaid & her SSI benefits when the bank shows that it sold for less than owed and (on paper) they made a "gain". Also, even though it's only a paper gain, we are afraid that DSHS & Social Security will look at it as them "giving away a resource" (even though they would lose the house anyway to foreclosure) and impose a penalty on either or both their benefits, thereby cutting off their aide for a period of time.

Both of them are elderly AND sick, & need every dime as as well as the COPES & Medicaid coverage for him as he is on a lot of medications that they couldn't possibly afford, so I don't want to do anything to cause a problem for either one where they might possibly lose coverage and/or their monthly financial aide, as she must pay for her insurance coverage for now.

I spoke to DSHS on this & they said that if the bank issues paperwork showing a "gain", even though they actually didn't GET the $ it would be considered a resource that they gave away. But the amount they sell for will also be calculated against fair market value.

In the condition the house is currently in, fair market value might very possibly be what they owe, but I certainly don't think that it is worth what they owe on it in its present condition, and the bank seems to agree- it does need a lot of work.

SO... my question is- has anyone dealt with a situation like this before, & if so, how can I protect the owners from losing their benefits due to a penalty from DSHS or Social Security due to "giving away a resource"?

The owners are perfectly willing to sell as long as there will be no problems in this area.
ANY thoughts on this from anyone would be most welcome!
THANX!
AMGP