Posted by ken in sc on November 16, 2000 at 07:36:06:
For scenario #1 - Could you trade them a nonrefindable downpayment on a ls/op on another house that you have for sale (or can find for them) for the remainder interest in their house? This way, you almost guarantee you sell them this new house and get a good deal on the old house when the mother dies. Also, you get a long term lease on the mothers house so you can sublet it for now. That way you control it and keep the maintenance on it while you lease it before the mother passes on. Study what a Life Estate is and how it works. It sounds like the couple needs a place to live that is less costly than the mothers house, not cash. Get them what they need.
Scenario #2 - I am not sure I undertand but it sounds like either you, or you with a partner/investor need to buy this house, rent back to them until they get stable, then sell them another house. They are going to lose this house. The question is, will they get foreclosed and evicted, or will they sell before foreclosure, get some money and be able to live there until they can successfully move.