1st occupied foreclosure - short-term lease to prev homeowner?

[Michael Hayworth]

Bought my first occupied foreclosure last week (regularly buy at auction, but typically unoccupied homes). Posted Notice to Vacate as soon as I bought it. Met with previous homeowners, who under Texas law are now "Tenants at Sufferance" yesterday.

I told them I'd be willing to do cash for keys, or set them up on a 1-year lease at 10% below market rate (which would be around $1000). They want to stay in their home of 20+ years, but they can't even come close to affording that. They were struggling with mortgage payments about $500. (When I refi this cash purchase, my monthly outlay will be around $750.)

I don't want to be evicting someone right at Christmas. My thought is to offer them a one-month lease at $500, then even offer them $200 toward moving expenses if they move out on time. That gets them through the holidays and gives them time to find a solution. (Although I'm not sure what that is. She's disabled, and it appears Section 8  has a long waiting list here.)

Any downside here, other than lost cash flow? I know if they refuse to leave in a month, I'll be resetting the whole Notice to Vacate/Eviction Proceeding process, but is there anything else I'm missing?