Attorney said it would mainly protect from Debt or general liability, not much from any issues which the buyer would sue after closing such as non-disclosure or home defects.

Right off the bat the idea of taking on $250K+ in debt does not sound appealing.

Did the mother have any other debt?

Debt suppliers are quite fungible and it is easy to locate others.

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.

Prob the easiest way would be to save each doc as a PDF then combine them all into 1 PDF.

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.

All too often when I've looked at these deals they turn out to be some combination of overpriced, under rehabbed, poorly managed, and rent is overstated.