The lender even quit communicating with me, which I did not think was legal.

Then once the 1031 is done if “legal” take a loan out an buy your new primary house.  6.  

This is not tax or legal advice, just what I personally do, consult your professionals! 

Clear financial separation ensures all rental expenses are deductible, maintains legal protections, and simplifies tax compliance.This post does not create a CPA-Client relationship.

To start the idea of selling lease options when a seller has a mortgage is pie in the sky not legal.

Someone in the legal profession told me that we can give her 30 day notice and then proceed with an eviction. 

Just a worthless piece of paper that validates a promise (legal obligation). 

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

In that case, you’d typically need to file a legal challenge, which could involve going to court and showing that the restriction is unnecessary or unreasonable.The best advice I can give would be to consult a real estate attorney to understand your specific situation and options.

Consult with competent legal counsel to guide you regardless of your choice here.