I HAVE A HARD CHOICE TO MAKE,MOTHER IN LAW 'S HOME IS A REVERSE MORTGAGE HOME,BUT IN FORECLOSURE PROCESS FOR INSURANCE LAPSE AND UNPAID TAXES.

After another interesting process with a construction mortgage and then rolling it over into a traditional mortgage, I now have a passive solar, LEED gold compliant house that I meant to live in for the next 50 years...

If the condition is shabby what means do you have to get a mortgage? 

So, in a hot market the seller will look first for a cash buyer with no financing contingency, second for a buyer with approved financing from a conventional lender, third from a buyer who has been qualified by a mortgage broker, and last, i at all from a buyer with a POF from a hard money lender.Of course not all sellers, or the brokers representing them are sophisticated, so if you make enough offers you WILL get some sellers that accept you POF letter.Just to show you how meaningless these POF letters from hard money lenders really are, about 8 years ago a number of lenders published a generic POF on their websites, and told potential borrowers to download the letters, fill in the blanks, and they had an instant proof of funds.  

With house hacking I have read three months worth of mortgage payments at a minimum.

What happens when you offer a discounted cash offer but a balance still remains on the mortgage? 

Not to mention upkeep (repairs, taxes, water, insurance) of her personal property (reverse mortgage) and mine.

You can put 10 residential mortgages in your name.

Use cash flow from all properties to pay off mortgage for one property, then buy the next one. 

With your proposal, the mortgage is assumable, but the equity is not liquid.