Either way, you could still sell the house by bonding around the lien, filing a complaint with CSLB to go after his bond, and then fighting the contractor in court. 

Every deal has a front door and a back door, know where they are.Your real or perceived equity is always at risk with a sub-to, if you don't have the money to pay off the obligation you need to understand that you may need to walk away from some of that equity to live to fight another day. 

He and other landlords have a strong cases to fight it, but it's never fun to tangle with the city.

Putting a family in a cramped, akward space is going to mean short term tenants, and I'd rather get a little less rent consistently for years, than fight vacancy for a couple bucks more a month. 

Your only hope in a fight is to dispute the "current market value" of the 8 sqft but more than likely not worth the costs involved. 

I sent contract again.Peoples fight over contract.Someone puts deposit down  immediately.I saiys.

Would it be a waste of time to fight with her in this to Section 8 and Housing Choice?

She takes up some sort of legal fight against your property that your parents estate isn't covered against.

I had one deal almost not work because the sellers attorney didn't like that the house was being sold for a great deal and tried to fight it.

I talked to the assessor yesterday, and was told good luck, go to the board of appeals meeting in April, that is the value.The parcel I am fighting is a 20 foot wide by 130 foot deep adjacent to my property with a SFH on.