You can explain to the woman that your policy requires all adult occupants to be on the lease for liability and compliance reasons.

I have a few rentals on the lower end of the spectrum that to me, have more of a liability issue.

I believe that the cost of every legal hoop you make the Trustee jump through to complete the foreclosure will be added into the amount owed and will reduce any possible overage from the sale of the property.In addition, unless there is a fatal defect in the deed of trust, the sale is going to go through and a request for a TRO (which I doubt would be granted) or filing Bk (which I'm not sure would stop the sale since you're not the borrower, have no liability for the debt, your interest arose after the foreclosure began and you had knowledge of the 1st DOT's foreclosure) will not stop it. 

You have no liability in this issue.

Having a complex structure adds annual costs, but it might make more sense to enhance your insurance liability coverage instead. 

The other thing to consider is that 401ks and IRA provide really good tax and liability benefits.

The Liability rates may change however. 

You paid the market price and own the liability.

But, an LLC will not limit you from liability in total.

@Hughston Thackham why would you include utilities in rent and take on the liability, when tenants can abuse utilities?