Some states re-assess on purchase, others do not (and when I say "states" I'm not implying that the state is the taxing authority--it's typically the county--but the state typically sets the tax code, with some exceptions).  

This form of vesting implies an absolute form of ownership.

That implies a cash deal.

While Arena calls his critics retrograde and implies racism (many of whom probably are), I personally find it understandable on a financial/psychological level that empathy diminishes when an event like that stands to decrease the value of the biggest investment (a home) you're likely to make in your life. 

Note the front doors, and what the window down below implies too.People dropping $200k on ADUs aren't subsequently selling those homes for $200k more.

That probably implies an equity interest and would require your having to foreclose if in default.

Ideally, I want to keep the home, I'm open to ideas on how to save or sell the home - please be nice as this is not an ideal situation so I'm looking for a way forward, I know I screwed up, I'm looking for some help I don't think you mean "Escrow" fees as that would imply your home/loan is in escrow, for a purchase or sale.

This implies that at least in those two cities it can only be used for a house hack. 

Is it implying rolling over the 401K into an IRA ?  

Maybe I'm misunderstanding what you wrote or, maybe you misstated but you did say "Off their books" which would imply they own it, which would imply they went through foreclosure sale and if that did happen, still, no reputable bank would work directly with a buyer.