$650k home purchased in Mar 2025. $140k home sold in Jun 2025. I don't know what they owed to their mortgage company to close out that loan. Plus, there are realtor and closing costs. If nothing else, they needed this $300k in the bank well before they closed in March. They had to get it from some place. Maybe, they saved that money. Maybe, they borrowed it from the NG with the promise to pay her back as soon as their house sold.
I do know that when we loaned our son a substantial amount of money to purchase his home, we had to sign a document stating that the money was a "gift" to him. The mortgage company wanted to make sure that there was not another major loan debt that had to be paid.
If NG lent them this amount of money, she surely would have had to do the same. Of course, some family members will honor their debts. Others stall and pay partial or won't pay at all. Who knows?
Just throwing that out there for consideration.
JMO.