This is not a financial planning question but a simple can you afford to buy a home and how much can you afford if you can buy.You might have better luck posting in the home buying section of this site as this personal finance portion of BP doesn't get much attention.

The redemption rate was 8% on the taxes plus some portion of the overbid.

You and we both expressly intend that no portion of the Collateralized Goods will constitute a “fixture” attached to any real property, and that the Collateralized Goods will be removable personal property.

Here are a few:Invest in Rental Properties:Buy Rental Property Outright: Use a portion or all of your equity as a down payment to purchase one or more rental properties.

Your rents are always on time - at least, the portion that is covered by Section 8. 

Both realtors and wholesalers play vital roles in the real estate ecosystem, and finding pathways to synergy could redefine market dynamics in positive, progressive ways.https://www.linkedin.com/pulse/why-do-realtors-like-wholesalers-ben-lovro

Time is only one portion of understanding if you should lower price.

BTW, There is nothing wrong with your mom buying herself something nice with a portion of the money if she does liquidate the house.  

They eventually paid a portion of it, but not the full amount.  

The portion reading "the party making the payments is obligated on the mortgage debt" seems to be an issue.