My question involves a foreclosure in the State of: CA
My elderly mother owns her home free and clear. She now lives with me and her home has been un-occupied for 6 months.
I really do not want to rent it due to the hassles of being a landlord, but she does need the monthly income. Ideally I would like her to sell the home but in this market that is not very appealing either. The home is worth perhaps 160,000 right now down from 300,000
I was approached by a neighbor who lives 6 houses down from my mom's home who said she had 100,000K cash to purchase a home for her daughter.
I was considering taking the 100K and taking payments for the rest of the amount, my thought was that it would give my mother monthly income she needs and avoid the hassles of dealing with renters. It would also be a way to get additional $ for the home even in a down market since the interest would add to the total bottom line, does anyone see where the downsides to this plan are? Specifically if she is offering 100K cash I am assuming that their credit is shot and would be unable to get conventional financing, if their credit is shot I am concerned about default I realize that they have over 50% down but what if I do have to foreclose on it? I have seen rare situations where people will ride it out and allow foreclosure rather than selling a home.
Any thoughts appreciated; I really do not want to mess this up.

