All the drama aside from this woman, I think the best thing you can do as a parent for your children is recognise when you are not suited to be a good parent for them, and find someone better. Being homeless would be not suited in my opinion.
It doesnīt even have to be forever, just until you are back on your feet.
in this situation I do think that she was just looking for the easy way out. In which case I think it is good that you didnīt take over, because you could have been in worse trouble, but I would have also suggested (if you asked for advice back then) to notify the authorities, because this child deserves a better chance in life.
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