I qualify as a foreclosure consultant under the law here in OR  IE I am a licensed mortgage banker.. however the laws have way more teeth than just that.. in our state the equity is protected and must be shared. that right there makes most pre foreclosures a non starter from an investor stand point. and a quick way to get into problems .. the OP will be wise to freshen up on the laws .. and not just trust someone.

As for those spots causing your tenant's illness -- not likely unless she's REALLY sensitive, and if that's the case, she'd probably know for sure already.Sounds like you've got a good plan.

I have until the end of this month to acquire the property so This is very time sensitive.

Should I  possibly close the acct and pay the taxes &int, or just take the disbursement and grit my teeth?

This means that all interactions such as buying a property, paying for expenses and receiving income take paperwork, delay and processing fees.The alternative, which is generally superior for a time-sensitive and transaction intensive asset such as rental property is the IRA LLC.

Not much teeth though.   

But be sensitive to the lady who just lost the house. 

HOWEVER you can tell the judge the time sensitive situation about the pre foreclosure and the urgency to sell the property , the judge will 99% give them a quick order approval to sell the property. 

This is time-sensitive as we are getting ready to close. 

I have negotiated them lower and negotiated them higher ( much higher)  depends on what it is and current market conditions.although in reality most agents working for a broker are not allowed to negotiate or if they are very little.its once you become an independent broker working for yourself that your free to negotiate.in our market there is defiantly pressure... downward.. 7 % used to be somewhat common... then of course you have the nationwide 6%  that is common.. now in our market 5% is more common and on high end properties you will see 4%  ... now I sold land.. it started at 10% and had been 10% for years then as the decades rolled on.. it dropped to 6% as well.I specialized in remote rural acreages as I was cutting my teeth in the industry..