I bought a property that has elderly tenants on it. They want to stay, but they can not afford to pay fair market value. For a bevy of reasons beyond the scope of this post, I don't want to be a landlord, and they want to be the owners.
Can I sell them, as joint tenants, a life estate in the property? I was thinking of charging them significantly less for the life estate, because I would get the property back after their deaths.
If I seller-finance them the life estate (through a deed of trust), can I foreclose if they fail to pay as agreed? If I do that, do I have full fee title to the property?
If upon their deaths they have not paid off the deed of trust, do I have to hold a trustee's sale to extinguish it, or can I just release the deed of trust and forgive the balance?
What else should I know about selling a life estate? I'm looking for general discussion here, not specific advice. I will hire a lawyer before actually doing anything.