As long as both owners are notified and served with the foreclosure, then the entire title should transfer to the buyer.  

It sounds like the title will be transferred to a land trust, and my LLC or I personally will be the land trust beneficiary.

If financed, you should consult your lender regarding transferring ownership to your newly formed LLC.

They can walk in to a local branch with cash or personal check, or pay via ACH bank transfer online. 

2) Would you register an Arizona LLC to do business in California, transfer the lien to the LLC, then have the LLC's lawyer foreclose in the name of the LLC.

This simplicity can make assuming a mortgage an attractive option for sellers looking to transfer property without altering their tax circumstances.

Any delinquent loans are “put” back on the seller.From the seller’s perspective, it requires managing the complexity and liquidity requirements of outstanding options.To compensate for the transference of risk, notes with put options trade at a lower yield.- Sellers receive payment for the loan and a premium for the option.- Buyers earn a reduced yield but hold a valuable option.Much in the same way that equity yields are reduced in up markets when bought with put options.How often do you buy/sell debt with put options?

However, there may be certain exemptions or procedures available in your jurisdiction to avoid reassessment in specific situations, such as when transferring property between family members.The approach suggested by the tax assessor office, where Aunt A provides evidence that she was only a co-signer and has no ownership interest in the property, could help support your case for avoiding reassessment.

The buyer can add a performance deed to the transaction which basically states that if the buyer defaults on the loan, the property is transferred back to the seller without a long and costly foreclosure process. 

This is often viewed as a "gift" so lenders place limits on the amount that can be "gifted" as well as the manner that these funds can be transferred to you.