Currently in contract...risky seller?

[Aaron J.]

Hi, just wanted to get some advice...

We made an offer on a house. The seller accepted offer with a counter of 2 weeks rent back. We accepted with a counter of all carpets and house professionally cleaned. The seller accepted. Today is the inspection. We learned some information about the seller through neighbors that the seller is a mentally ill alcoholic with no job and, broke and a recently broken family resulting in divorce. The seller has been arrested for alcohol/domestic related incidents. The seller will be living in the home from now until the close of escrow and two additional weeks of rent back. How risky is this and what is my recourse if damage is done (as a result of the sellers current mental instability) to the home between after the inspection takes place and the end of the 2 week rent back ? Also what if the seller doesnt clean the place as per contract. I realize I could go the legal route or through arbitration but wondered if it's worth it knowing that even if I won, i'd get nothing because the seller is broke. Thanks for your input.