Not saying I would have done it, but I would have considered it.So, basically, the moral of the story is that you’re in a pretty good position either way.

@Willie Morales I can refer my attorney who is one of the best in western PA.

We had a tenant similar to what you described and were in this same predicament. 

Its not really a scam, but more an ethical/moral issue..  

@Angel Morales I have purchased flips using owner carry terms  I gave them a 10-20% down payment at closing.

having spent a decade in the timber business in Oregon I call it Oregon porch time.. these are not inner city dwellers these are folks that you need to sit with and talk  have coffee and build reporte'if the homes are nice and clean and saleable probably tough to buy under market unless your good at looking someone straight in the face and telling them their 300k home is only worth 200k.. that is a moral issue.Also be aware that you CANNOT legally sell a home you are not in title to in Oregon.. its selling real estate with out license and don't listen to all the people from all over the country that wholesale.. many states its an accepted practice in Oregon it is not.Also if your flipping homes IE coming into title you also need a developers license in Oregon  talk to @Karen Margrave she just got an education on this.. the state is cracking down on flippers.. its a 5k fine.. usually 1k first time. 

I don't want to do anything that will get me sued or lose my license. follow your moral compass.. if you think basically lieing to a client is OK  then that's were your moral compass is pointing to. .. 

If the pastor has a moral failing, takes an unpopular stance, or drama starts it can tank fast. 

I just got a very warm lead that is in quite the predicament.

Had you worded it as more of a "moral" situation I think people wouldn't have gotten so defensive.