Did the mother have any other debt?

But the question posed was how can we clean it up....I think.Well, follow the lead of the good ones, begin underwriting the deal, asses the real risks involved, employ tatics to reduce or eliminate identified risks, and assess the value truly given and charge fairly for the real risk assumed.

Chances are you will - have a deficiency judgement, - if there is a second mortgage you will owe that money, - the IRS views the debt as forgiven income (see a CPA), http://www.irs.gov/Individuals/The-Mortgage-Forgiveness-Debt-Relief-Act-and-Debt-Cancellation-- your credit FICO score will drop as much as a foreclosure,and - your borrow-ability with any government agency like FHA will be harmed for a long time.So what is left?

This is all dependent on your down payment and debt payment.

Higher end property like the one you talk about is less risky and collections are easier but to manage that debt on negative cashflow seems more risky then its worth to be in a great hood.

Interest rates are at historic lows, but with the QE infinity, and the national debt, it seems plausible that interest rates will be much higher in the future, when that is I don't know.

The list agent contact info is right on the MLS listing, so if your agent refused (which they do not have a legal right to do) to send to list agent, you could have done it yourself.Secondly, if the seller was given the report, all the docs excluding them from liability does not eliminate their required legal requirement to disclose what they are aware of and that could no longer play dumb on the mold issue once served with the docs proving it.

I have over 100 to invest and of course my monthly income as I have no debts.

Does this company have low debt and good profits or dividends or is this a solid company and it wont disappear tomorrow.

Just because you might have 125% debt coverage and adequate collateral with good credit doesn't mean you have the ability to endless funding, lots of factors play in to the picture that are beyond your control. :)