Only a few states have the charging order as sole remedy that would create that great layer of outside protection.As it is generaly better to have the LLC in the same state than the property, if you are in a state that does not offer charging order protection, it is then advised to open an holding LLC in a state like WY or NV that will own the LLC to create that outside protection.You can create the LLC(s) yourself for a few hundred dollars (depending on the state) and have an attorney draft a good asset protection operating agreement for around  $1000 to $2000 depending who you choose.

Most leases should have something saying the tenant is responsible for any remediation.

Talk directly to the home owner,see what they are doing to remedy the situation and feel them out as far as being potwntial seller before the foreclosure takes place.

It does seem like a risk I wouldn't want to take.I'm sure you will, but be careful to use insured and licensed remediators for lead and asbestos, if for no other reason than liability. 

I am not familiar with the CO code, but I believe this is on the landlord.In Colorado, the Colorado Revised Statutes (CRS) include a definition of habitability and legal remedies for tenants living in units that do not meet the definition of habitability. 

The lawn got out of control and because the property owner information hadn't been updated in the city's database yet, San Jose sent me a letter after someone complained (forwarded to me by the Post Office).The letter said I had so many days to remedy the situation and the city would send out an inspector to check.

For example, if you open a wall / expose and old wiring (specifically Knob and Tube) you must remediate all of it to get any insurance company to give you a policy.

How do I do my due diligence in confirming and or remediating if needed?

That issue should have been remedied at closing. 

Most have already tried to find a way to remedy the foreclosure by working with the bank, tried Mofiication Gurus, explored bankruptcy, and even shortsales.