My friend asked to move into my home that I am selling and live there for free until she can find a place. 
Yikes, that's a tough place to be in. She's very forward for asking something like that too.
I know shes a pretty close friend, but its still scary the thought of letting someone move in. They say dont deal with friends or family when it comes to business. 
They do and you never know what could happen, let's say you guys get into a fight and then she trashes your house! Not a good outcome!