In Arizona, foreclosure can take a LONGER time and become judicial depending on the amount of equity a borrower has in the property.

Either they use the wrong sources for determining ARVs or they want way too much in fees.Good job on finding a seller and working a contract, if you dont close the deal or make any money you still gain experience you wont get from any book, seminar or forum.Sellers can be motivated to the max but if there is no equity it has to be creative/complicated.

This is not all that complicated to figure out he has income problems.

I knew this question would be a complicated answer, and it really helps to hear everyone's points of view.

@Pascale Jean  real estate Is not that complicated.. start with getting a RE license go work for a good commercial broker or retail broker.. earn while you learn.. wholesaling is very tough with about a 97% failure rate.. also what is buy and hold going to do for you say your lucky enough to buy 1 or 2  and they make 200 a month that's a whopping 400 a month.. most need some sort of career and make money usually in their day job then invest. 

The amount is under the restriction but the loan is a FHA so it complicates the matter.

He most likely also sees a lack of experience in a very complicated field.

While I would certainly not force a lady that old onto the street, especially given that she's done nothing wrong, she does have a place to go and I expect her to keep her commitment.In the short to medium term I can keep this afloat without the income, in the long term, I will end up defaulting if I can't get renters in there so I do have to take this seriously.The idea is to put pressure on the family to get them to stick to their commitment while having a minimal impact on the elderly lady.I guess what I'm looking for is to hear how other people would handle this complicated situation.

@Kyle Eckmann It depends how complicated/advanced your bookkeeping needs are.

I feel like I am making this more complicated than it has to be.I just want to make sure I am doing things ethically and legally.