My mil is a RACIST

Ok I'm gonna rant. My mil drives me crazy for many many reasons, but she is starting to really make me upset with this crap. Skin color is literally the one and only thing you can not change in your life and it's still one of the biggest issues in the world today and it drives me nuts. My mil is so racist it's not funny. Her daughter my sil is pregnant and we had asked if she had picked out baby names yet and they had picked out some very cute names for both sexs,at this time they don't know the sex of the baby. The first thing she said wasn't those are nice or how did you come up with those, it was those are white names you can't name my grand baby one of those names. That started a huge fight but that's only one thing. My SO and I are trying to find a house to move to rather quick because of what's going on with our landlord, but that's another story,anyway we had found a place that looks promising and we had told her where it's located and the first thing that comes out of her mouth is in Niggervill, I don't like all the Niggers you'd be living by. My SO jumped in and said don't talk that way the neighborhood is mixed because it's by the college. I told her and besides you won't be living with us so you don't have to worry about it. Then she said well I got to find a different place to move because where I live now is becoming a WHITE neighborhood and I can't stay there any more. Now keep in mind I'm a white women as white as you can be I almost glow in the dark. Lol. I am like the least racist person ever I don't see color in zee z a. I have dated different races, I have friends of different races. It drives me crazy when she knows she's gonna say something racist but instead of not saying it she'll say no offense to anyone right before she'll say it so she can try getting away with it. When we go out if she sees a more dominant race working there she'll make a comment about it and if we stay she will make racist comments to whoever is helping or serving us and we have to apologize for her actions and over tip to make up for it. I don't know how to cope with this, she doesn't care and is very unapologetic about everything she says or does. Any advice on what we should do?