The purpose is to insulate your personal possessions and assets against any potential liabilities arising from your income properties.You may see mention of Mark Kohler here on BP.

The previous homeowner is adamant about staying, and its requiring me to get a Writ of Possession to obtain possession.  

Under current bankruptcy law I see no way to use bankruptcy to retain possession of real property while discharging debts, unless one is willing to lie under oath.  

Nonetheless, we have typically had to file two separate cases, one for possession, the other for a money judgment.

The best way to avoid those nasty taxes is to get rid of your money and possessions before you die.

The seller refuses to give possession at close citing he has too much risk if financing falls through and he's all packed to leave. 

However once you have possession of the property each CAPEX Vacancy repair situation should be handled case by case with a hope for the best approach. 

We want him to obtain 100% ownership of the home (mobile home with land and mortgage), but it seems as though I will need to go through the succession process in order to receive a judgement of possession and then donate my interest back to my step father. 

I had to file for writ of possession, hire an attorney and go through the long process of evicting the former owner.

I believe at that point you could request they vacate at the end of their lease:EVICTIONS FOR OWNER-OCCUPIED TWO AND THREE FAMILY DWELLINGSIn addition to the causes listed above, a tenant residing in an owner-occupied two or three family dwelling may be evicted if the landlord can show that the tenant is staying after the expiration of the lease and the landlord has given the tenant a written notice for delivery of possession of the property.