You can be sure they will continue to negotiate for, strategize and advise themselves.If the laws are similar where you are, you should consider if you want someone doing those things for you, and whether you are comfortable going toe-to-toe alone with a licensed professional on a $1.25 million purchase.

The window for application won't open until what's now a draft proposal becomes law.

Its not as simple as using eviction law even after you closed and now are the owner. 

Should We:Sell, take advantage of the capital gains law, move, and pay the mortgage off on the new house, credit cards, etc…?

Quote from @Derrick Lewis: I looked up NY state law just for fun and found a good list of recommended practices.

In the meantime I would love to have some helpful information or ideas to share with the buyers when we meet and ideally an agreement/contract we could fill out together once new terms are agreed to and then share that with the attorney so he could draft up the formal instrument for recording.If you have experience with this type of scenario, I’d love to hear any recommendations you have or any helpful resources you could point me to for the appropriate paperwork.Under foreclosure laws, you have to send appropriate notices and try to work with the borrower and offer a loan mod before foreclosure anyway. 

Seems like a good idea in theory maybe not in practice. 

@Joey Chalhoub This decision should be read narrowly to address statutory frameworks such as MN where state law permits it to take property to satisfy real estate taxes/penalties/interest, sell it, and keep any surplus outright.

This will allow you to get the sheriff involved immediately.If you are already past the notice period then you will probably have to follow whatever state laws are in place for the notification period and possibly the eviction process.

I am a big fan of sophisticated value adds such as lot splits, coop/tic, leverage laws for multiple unit additions.