Is it in pre-foreclosure...meaning probably some payments were missed, but they actually haven't taken ownership yet?   

You typically cannot transfer ownership on a current insurance policy and keep the same terms.

With the master, would this still be a viable solution if each one of my LLC's have different partners and ownership splits? 

This simply means that the property ownership reverts to the lender.

To register, an owner must provide a completed application, proof of ownership, designation of a responsible party, a copy of the City of Bradenton’s business tax receipt, a current and active license as a TPLE, a current certificate of registration from the Department of Revenue, an exterior site sketch, an interior building sketch, a blank rental agreement, and any pre-existing rental agreements.

@Patrick Irish based on what you say, the Sec 121 Exclusion and the 1031 Exchange both seem like they'd be good options for you to defer capital gains on sale of the townhouse.Sec 121 Exclusion has 3 requirements: First, Determine whether any of the automatic disqualifications apply (acquired property through 1031 exchange in last 5 years, or subject to Expat taxes)Next, meet the ownership requirement -> you owned the home for at least 24 months (2 years) out of the last 5 years leading up to the date of sale (date of the closing)Finally, meet the residence requirement -> owned the home and used it as your residence for at least 24 months (or 730 days) of the previous 5 yearsThere is no “Wiggle Room” but there is a Sec 121 “partial exclusion” for people like you that missed the residence requirement by a few months.

Over the years I have quieted title and took ownership of 26  properties, 15 of which I have sold for over 800K and still own about 500K worth that is listed or I will be selling in the near future. 

Changes: There will still be a tax lien sale like there is now except the bidding mechanism will be to bid down % interest rate instead of % of ownership.

The PM could transfer or cancel them or the guests could decide to stay somewhere else once you inform them of the new ownership. 

Otherwise if buyer fails to pay, seller has to incur legal expenses either to take back their ownership through deed or to assert a claim against buyers other assets (if there are any).