My personal home loan has a mortgage balance remaining of 157,000 and it's currently worth 550,000.

You will be personally sued along with your LLC.  

And ensure to not intermix the business and personal between the two. 

I'm willing to help this person in any way I can.

Does someone have experience buying a foreclosed property and keeping the existing person/family living there and converting to a tenant? 

Does the LLC file its own tax return, or do you report the activity of the property on your own personal tax return?

A relative who does long-distance real estate investing told me that I have to sign the final loan document and the transfer of ownership document in person.

I'm willing to help this person in any way I can.

My wife and I own it together, but i may be able to buy her out and keep it as a short-term rental without spending all my personal capital.I’m looking for advice on financing options, buyout strategies, and any creative solutions others have used in similar situations.

@Mark Towey I don't "farm" areas personally, it doesn't really fit the niche I'm personally going after, but what I have heard from some major agents in my market lately is that farming is not near as productive as it used to.