Not sure what would prevent you from doing this?

Also, closing will prevent them from going into foreclosure and losing the house.  

If they actually get in the courthouse door nothing prevents you from calling them up and trying to settle their claim outside of court.

Scraping, repair and painting and regular preventative maintenance should help.

Cable didn't prevent the gutters from freezing.

What are some good ways to finish the backyard to prevent weed growth and maintain a usable backyard with zero to very minimal maintenance.  

Just as important, how does one prevent turning them off from real estate investing (i.e. doing it the wrong way)?

Sl # Links 1 https://www.biggerpockets.com/renewsblog/2013/03/19/exit-strategies-defaulted-notes/ 2 https://www.biggerpockets.com/renewsblog/2013/08/07/prevent-2nd-mortgage-notes/ 3 https://www.biggerpockets.com/renewsblog/2013/08/01/p2p-lending-peer-to-peer-lending-and-investing/ 4 https://www.biggerpockets.com/renewsblog/2013/06/19/marketing-for-notes/ 5 https://www.biggerpockets.com/renewsblog/2013/05/21/dealing-with-unethical-clients-a-story-of-deceit-in-real-estate-note-buying/ 6 https://www.biggerpockets.com/renewsblog/2013/03/28/longest-note-purchase-imaginable/ 7 https://www.biggerpockets.com/renewsblog/2013/03/05/note-buying-due-diligence/ 8 https://www.biggerpockets.com/renewsblog/2014/01/09/starting-notes-real-estate/ 9 https://www.biggerpockets.com/renewsblog/2013/11/06/bidding-notes/ 10 https://www.biggerpockets.com/renewsblog/2013/09/11/collecting-arrears/ 12 https://www.biggerpockets.com/renewsblog/2013/03/12/buying-mortgage-notes/ 13 https://www.biggerpockets.com/renewsblog/2013/03/12/getting-in-contact-with-the-borrower-the-hardest-part-of-the-note-business/ 14 https://www.biggerpockets.com/renewsblog/2013/02/26/finding-buying-notes/ 15 https://www.biggerpockets.com/renewsblog/2013/02/19/five-advantages-of-note-investing/ 16 https://www.biggerpockets.com/renewsblog/2013/02/18/cash-flow-notes/ 18 https://www.biggerpockets.com/renewsblog/2012/12/19/what-is-a-mortgage-note/ 19 https://www.biggerpockets.com/renewsblog/2012/07/21/technique-to-ensure-good-note-investment/ 20 https://www.biggerpockets.com/renewsblog/2013/01/18/mortgage-notes-how-to-structure/ 21 https://www.biggerpockets.com/renewsblog/2012/01/25/mortgage-notes-a-hard-land-ing/ 22 https://www.biggerpockets.com/renewsblog/2012/02/03/even-note-investing-has-guru-traps/ 23 https://www.biggerpockets.com/renewsblog/2012/02/17/how-a-pizza-franchise-ad-led-to-a-real-estate-note-purchase/ 24 https://www.biggerpockets.com/renewsblog/2012/03/08/gas-station-mortgage-notes/ 25 https://www.biggerpockets.com/renewsblog/2012/03/23/how-bankruptcies-affect-your-note-investment/ 26 https://www.biggerpockets.com/renewsblog/2012/04/10/real-estate-investors-consider-secured-notes/ 27 https://www.biggerpockets.com/renewsblog/2012/05/10/essential-tips-investing-non-performing-notes/ 28 https://www.biggerpockets.com/renewsblog/2012/05/17/what-does-note-buyer-seeking-realestate-note/ 29 https://www.biggerpockets.com/renewsblog/2012/06/28/collecting-first-mortgage-note/ 30 https://www.biggerpockets.com/renewsblog/2012/07/21/technique-to-ensure-good-note-investment/ 31 https://www.biggerpockets.com/renewsblog/2012/01/13/property-values-and-mortgage-notes/ 32 https://www.biggerpockets.com/renewsblog/2011/10/14/real-estate-notes-investing-selling-buying-partials/ 33 https://www.biggerpockets.com/renewsblog/2011/09/24/mortgage-notes-advantages/ 34 https://www.biggerpockets.com/renewsblog/2011/06/08/5-pitfalls-note-investing-06811/ 35 https://www.biggerpockets.com/renewsblog/2011/05/25/get-note-pre-approval-before-the-deal/ 36 https://www.biggerpockets.com/renewsblog/2011/05/18/heart-smart-note-investing/ 37 https://www.biggerpockets.com/renewsblog/2011/05/11/is-your-seller-financed-note-in-respa-compliant/ 38 https://www.biggerpockets.com/renewsblog/2011/04/20/investing-in-notes-is-not-a-one-and-done-commitment/ 39 https://www.biggerpockets.com/renewsblog/2011/04/14/a-note-buyers-checklist/ 40 https://www.biggerpockets.com/renewsblog/2011/03/24/land-contracts-buying-partial-notes/ 41 https://www.biggerpockets.com/renewsblog/2011/02/09/differences-performing-and-non-performing-notes/ 42 https://www.biggerpockets.com/renewsblog/2010/03/28/how-this-note-could-make-you-money-using-your-failures-for-success/Good Luck and Enjoy learning !

Also, to the whole idea of his partner showing the properties in a broker capacity, do you think signing the contract under an LLC they both manage and sharing the equitable title in the property/contract would prevent this from being unlicensed activity?

The loss you are taking each month will likely reduce your DTI and might prevent you from obtaining another mortgage in the future.