No Bank, Credit Union or Portfolio lender wants to foreclose on any loan if there is a way not to.

Whether bank or credit union - either will work. 

The teacher was an actual financial educator but they repeated themselves a lot and were telling the students to go in and apply for credit cards DURING the course to purchase the next course for $15,000!

At it's basic level:Assumption: Asking the bank to turn the loan over to you and going through the normal underwriting process, credit, income, DTI ratio etc SubTo: Taking over the loan without telling the bank, no underwriting, no credit check, no income verificationBoth have risks, but it's not my intent to be detailed in this post.

Some parcels are actually worth as much or more after the credits are clipped as before. 

They always make sure to have line(s) of credit to get them through challenging periods.

If you do have to move because of a job, you would be safest (in my opinion, i am not giving legal advice or financial advice), i would sell that property to ensure that you did not just purchase with the goal of moving out early and taking advantage of lower rates and lower down payments for purchasing your home as a primary residence. 

If I were in your and/or your mother-in-laws shoes, I would go to a local bank and use the free and clear house to secure a $150K+ line of credit. 

On the flip side, if you've got a bunch of Section 8 tenants living in a building that's in a neighborhood where a lot of the tenant base has good jobs, high credit scores, and are generally reliable people, you've got the most risky tenants in that tenant base and that ain't what ya want.

For financing, you might want to consider reaching out to local banks or credit unions.