According to bankrate.com at 6% that would leave a balance of around $71,386, so he seems to be legit?

I'm concerned about rents coming in & being taxed with out any mortgage payment going out to balance it.

Banks wont touch her, for the balance...she called the realtor and all he wants is to go by the books...she's a very motivated BUYER...I suggested Homeowner finance for her...

You will not get a good price on the note with the delinquent tax balance. 

The credit scoring system in this country tags people who make minimal payments on large balances as good credit risks.

I have heard of investors getting the deed and paying off the 'principal balance' as opposed to the payoff.  

If you have a credit card with a $20,000 limit, and you have a $19,000 balance, that looks far worse than the same card with a $2,000 balance.Your original post says you have a close to 700 credit score.

Specific Worst Case ScenariosThe house a mortgage balance of $63K, sell price is listed for $78K, current rental rate about $850, 3br, 1 ba, 1400SFAny advice is appreciated.

If I keep home I will keep having rental incomeIn case I do - A.I get 500K i can reduce mortgage on my current primary home which is jumbo - so it will become conforming and may be invest some money in tax managed balanced funds.B.

This indicates that a balance has been struck between the jobs that create other jobs through a multiplier effect and jobs that do not or if they do the multiple is low and indicates a stable economy and hence a stable housing area.Doctors, Engineers, Business owners, etc. have multiples of anywhere from 5-20 on a first level tier.