I would find an accredited land consultant and ask them to advise you.  

Readers are advised to seek professional advice.

Could you please advise if there are any alternatives or if Islamic financing options are available in the U.S. for this type of investment?

Does anyone have any experience / can advise on the process in each of these counties?

Far too risky there for pre-foreclosures because of the registration law you mentioned.Most of my pre-foreclosure business is in Arizona and Wisconsin, but I've done deals in Illinois, Texas and New Hampshire as well.I advise anyone looking to do pre-foreclosures to stay away from California, Maryland, Washington and Oregon.

@Donna Carroll its nice that your venting here on BP.. and in the for whatever its worth file... real estate requires some money some experience and some credit 95 to 99% of the time to pull deals off.the only way you can do this without it is finding a money partner first that is close to you... and that wants to help you with no expierence or other qualifications.. its just tough.this is why I like to advise folks to at least get a real estate license and if you can work part time that will get you hob knobing with those in the business and you may just run into a client or someone that really takes a liking to you and your drive .. and will over look these other things and do a deal with you. 

Readers are advised to seek professional advice.

Your agent should have advised a due diligence period to review info on leases, security deposits, rent history, etc., and that one unit would be vacant by closing if using an owner occupant loan.

Advise that the property has never been tagged by law or code enforcement as a drug production property and that their concerns are unfounded. 

Another option is cash for keys but I have never done this but others on this forum have and can probably advise further.