You can purchase a property for cash regardless of credit, or foreclosures in the past. As both other agents mentioned, your best bet is to find a REPUTABLE financial adviser to guide you thru the best path for you under your current circumstances.
This adviser should come highly recommended from someone close to you that has many years experience with the adviser.
Good Luck to you! :-))
Sorry for your loss. I agree with Tracey, you should probably consult with an attorney and a financial advisor on how to best handle the life insurance settlement. The last thing you're going to want to do is end up losing a new home if the lender on your current home decides to purue you for any deficiency. That will depend on the type of loan and the investor's guidelines.