Is this a good deal for a private money lender?

[Michael Lerch]

Need opinion on deal I'm trying to structure.

Seller has a house that would easily sell for $89,900 AS-IS. She doesn't want to sell outright, but she has to do something because she owes about $20,000 in property taxes. She wants to keep the house in the family if possible. Owns property free and clear. ungrateful grand kids currently live there but not much longer. We came up with this plan...

I loan her 20k (need private money deal) to pay off the 20k property taxes, and she will quitclaim the house to me. She'll make monthly payments to pay me back in approximately 5 years, and in the mean time I can rent the house out (would rent for around $900) and make money that way. The real kicker is she will sign on the agreement that if she fails to repay me in full in the agreed amount of time the house is mine free and clear! She is 80 years old so I said, "What if you should pass away?" She said, "If I pass away before then I will agree in writing that the house is yours." Whoa!

She just wants a chance to keep the house, and if she can't or misses payments I have it covered with the amount of rent that's coming in. Does this deal sound good or what? Any comments or words of wisdom? I haven't sought private money yet because I don't know if this is something they would even consider.