Then experienced financial difficulty and sought out a modification around or about 2009.  

Some of the CFIRA folks and a handful of others appear to be pushing hard for clarity and a modification of current "finder" laws for finding accredited investors.  

It has been in modification since 2008 and noticed in paper 5 separate times for forecloser. 

I don't have a hold/sell recommendation as I am unfamiliar with the market in northern VA, but you may want to check if your lender can offer a loan modification.

Loan File Chain of assignmentTitle – Verify lien position, other junior liensNote modifications / forbearanceOrigination documents – 1003, disclosures, HUDVerify Fee simple estateServicing File Mortgage payment historyBorrower Credit ratingLegal In bankruptcy process?

The "owner" said she had done a loan modification which she did not make any payments for so I'm wondering if she didn't give up the "normal/public trustee process" approach in exchange for the loan mod.

They get a plethora of tax writeoffs, tons of loans and grants for home modifications, and there are a lot of requirements as to the condition of the property or teh sale will be denied.

If you realize later the description should be modified you should be able to make this modifications to the post.

If the borrower performs, we will negotiate a modification.  

Since my day job was in the distressed mortgage servicing business a few years ago, I was able to coach them on negotiating with some of their servicers to get loan modifications and improve their cash flow positions.