Ron, it appears as if the seller is attempting to do a sale-lease back. As far as the sales price, find out how much she owes on her mortgage. Add in your fee for doing this for her. Do not put her on the title, this could be seen as mortgage fraud, and you could spend some time in jail. She may not have even thought about it. Have her sign a lease option agreement for 12-18 months to help her get her credit back on track. Tell her that you want to escrow 12-18 months of payments, in case she falls behind again or if she decides to walk away from the property. Remember, she needs you more than you need her. If you're satified with the 20k; then go for it. Make sure you are covered in case of worst happens. Thare are many people with excelant credit like you who make literally 100k or more per year just selling thier credit. Might be an avenue to consider.