In my area you dont have to be a GC to buold your personal home.Find a local bank to work with on construction loan (I would suggest you get a account for that bank and donuts always help) Get a list of your area governing body on what is needed to be submitted for approval.

What's different are the LLC governing docs and how it's structured.

We got the payment history back today, and sure enough last payment was June 2012, so they have not paid off the loan and when we go to foreclosure we have the payment history and we are confident we can get the foreclosure finished, and wipe out the Federal and State tax liens.Then we plan on doing a high end rehab, and put it back on the market. 

The right to lien a property is usually governed by State Statute.

I invite you to please consider the following, from a Federal Income Tax Filing Perspective.

There's absolutely nothing wrong with a thorough/strict lease, but keep in mind that no Lease can supercede local/state/federal law.

Once certain terms of the note are changed such as maturity date, balance or an increase in payment the modification is considered a new extension of credit and is subject to certain regulations which govern the extension of credit.- The creation of a new "note" would mean the satisfaction and release of the prior security instrument.  

Hello, was curious if turning a HUD property into a Section 8 rental would qualify as a "Government Agency"

Has the seller received any notice of foreclosure, if so you need to head the other way if you can't buy it, this is full of new foreclosure landmines, if no notice has been given then you can proceed on the creative side.If you are acting as an investor, you can do an installment contract, as a real estate dealer selling to a consumer, buyer tenant, you'll have federal laws to comply with, pretty hard to do now.However, I'm more concerned with, what appears to be, the  intent of avoiding the mortgage requirements.

While I can't say for your state specifically, as a general rule, commercial leases are governed by the contract.