Evelyn Mosley was found dead Thursday morning following a fire in her home in the 3000 block of Lincoln Avenue.
Early Friday morning, L.A. County sheriffs arrested Mosley's housekeeper for investigation of murder.
But a deputy says extensive questioning led to the woman's exoneration.
Neighbors are scared.
"It is very frightening, it's very frightening because she's a defenseless little lady, a little old lady, and I am afraid," said neighbor Jacqueline Jackson.
Firefighters found Mosley's body in a pool of blood in her kitchen after a fire at her home was put out.
Early Friday morning, L.A. County Sheriffs' arrested the housekeeper for investigation of murdering her employer Evelyn Mosley. But a deputy says extensive questioning led to the woman's exoneration.
The body of Evelyn Mosley was found lying in a pool of blood in the kitchen and police believe the fire was set to cover up the murder.
"A great lady. A feisty little lady, 90 years old," said Mosley's daughter Sandy Hamilton.
While family members remember the best about Evelyn Mosley, authorities are trying to figure out why this happened.
Firefighters were called to the house on Lincoln Avenue just before 10 a.m. Thursday. They say inside two rooms were on fire. Crews were able to put out the fire quickly, within 12 minutes.
As firefighters continued searching the home for more flames, they say they found the body of the Mosley in a pool of blood on the kitchen floor.
Detectives say there were signs of a struggle. Along with the blood found in the house, there was trauma to her body unrelated to the fire.
Arson investigators are searching for clues to what triggered the blaze. Authorities believe the fire may have been started to try and cover up the crime.
Mosley lived at the home with her daughter and her teenage grandson.
Friends and neighbors are shocked and stunned by what happened.
"She was so nice, she didn't do anything to anybody. She was as sweet as she could be. And I never knew yesterday that something like this was going to happen to her. It's sad because a she's a grandmother. She was so nice. She used to babysit my nephew," said Mosley's close friend Sandy Hayes.
The exact cause of death has not been released. The case is being investigated as a homicide.
Eyewitness News reporters Leo Stallworth and John Gregory contributed to this report.