This is a lengthy post, so don't feel obligated to respond to all of the questions.  

You could purchase the note and go through a lengthy and expensive foreclosure but as the note holder you still have to put the property up for auction so you aren't guarantee to get it.

It's not something I look forward to-- with this last turnover being an unusually more challenging/lengthy process, but I certainly don't feeling like holding her "hostage."

@Joe Hausen - Good question, but, it seems like you are not totally at ease with this undertaking and rightly so.My take is that this property might not be worth your time and effort to acquire, pay the overdue taxes, refurbish and sell for a measly amount of profit if not a loss. 

Thank you for reading my lengthy post :) - Matt

They got a % of the Gross Profit on the deal.I'm posting a more lengthy analysis of the project on the "Success Stories" section of the forum.  

It's a costly and lengthy process to prove and get grandfathered in if it's not currently legal.

Because the tenant is active duty military it is a lengthy process leading up to the court date due to VA law requiring ample notification time through a Guardian Ad Litum. 

In this market I have seen these not work out simply because the process is so lengthy.

If the zoning needs to be changed, that can be a lengthy process and also difficult.