Pre-Foreclosure Partnerships with homeowners/sellers

[Angel Perez]

If taking over a property "subject to" what would be the Cons to simply having the homeowner transfer the property to an LLC which outlines the ownership percentages negotiated and having the homeowner be a partner in the deal instead of simply pushing them out of their own home?

I know about the Do On Sale clause, but what legal & tax pitfalls should I look out for aside from that? How could this negatively affect the homeowner/seller?