I hope you made your Grandparents leave EVERYTHING to you for bailing them out like this!! I still don't understand why they couldn't just refinance with $10-15g to pay off the back mortgage and the refi costs. I know I am mean; but they would just have to have sold the farm too me and I would have given them a life estate. You also need to talk to a tax attorney or CPA on this. You can't just gift them a $100,000 without them then owing a big tax penalty. The SAFEST thing taxwise for you would be too buy off the mortgage and make them pay you payments; but crafting that deal would be tricky.