Are you involved in the tenant placement process?

Good luck with the lawsuit - figure out a way to easily get the greater real estate development community involved since it affects everyone. 

Will they have trouble making the payments to you while also having enough money to keep up with the maintenance and repairs/ tenant issues/ all the expenses involved with owning the property?

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Like anything involving holding of funds, your client should do his own due diligence and you should refer several to him if you are going to refer any.

They should have a process for this that will likely involve probate.

I have gone to numerous RE meetups and discussed numerous ADU appraisals and was heavily involved analyzing one (that gave a value of ~$50k for a ~400’ garage conversion 1/1.  

Of course I dont know if he taps into satellite internet and is still involved but he has had a ton of incredible adventures the last year from what I saw. 

If the property was involved in a bk it was put into an estate for the entity who filed.

Many states have non-judicial options where if the contract allows for it(most contracts do) then no court involvement is required to foreclose the property.