I did check into what the area is supporting for rents and I'm confident I could get around 1300-1500 per month for the home.

He transferred two properties into my LLC in exchange for equity ownership. 

@Seth BormanAccording to the extraction company, there will never be disruption because they are drilling outside of the city and pulling oil and gas from under our houses...The extraction company stated the prior lease allowed for the auto-renewal and that it transferred to me automatically as the new owner.

The day after closing, you could record with the county a deed that transfers all of your interest in the property to your LLC.

We were then told by auction.com we had to wait until the redemption period expired and they would transfer the title to us instead of the Sheriff's Certificate.

In doing so I would be transferring the property into the LLC.

(There wouldn't be any land title transfer but you'd need some kind of settlement such that the owner's mortgages and liens were satisfied, their property taxes reduced, etc.)

2) Things to look out for / question in terms of closing cost (i.e. is that $10,400 real estate transfer tax legit?)

You then might be able to present other options to the owner of the property the servicer could not because of constraints with the loan servicing agreement.Before considering buying a loan you would need an audit on the note making sure you have 100% true chain of proper transfer where the borrower could not try to claim somewhere along the line the mortgage was invalidated or not properly transferred etc.Dave Van Horn on here has bought a lot of mortgage notes so might contact him if interested in that type of thing.

I realize its not the 3rd party's 'fault' but the function of the ACH transfer makes it too easy to get burned.