See court cases where LL are successful sued for not providing adequate security or failing to provide a habitable living environment.

Well after many phone calls and contacting several credit union out of my area it appears you are indeed correct.

There doesn't appear to be any real reasons I should push it in this case. 

That is because with an in rem, the court will appoint a guardian ad litem (GAL) to represent the unknown people, and that is a separate lawyer who will charge $1,500 to $2,000 for their fee.

As mentioned there are actually over 7 ways that have been tried and true in court cases - This is really something your Tax professional should be figuring out because it can be a big part of your tax strategy. 

Auction.com auctions off Both as a trustee in “court house steps” foreclosure auctions And for reo’s already owned by a bank which is the majority of their listings.As for reo’s, you are typically getting “clear” title but do Not use their title co., the title insurance isn’t really free as they jack up other fees.  

The case will go to the court of common pleas, which will be much lengthier and much more costly.Has anyone run into this problem?

I guess what I am trying to say is that just because work on the property appears to be "done" it doesn't guarantee that it was done correctly or is safe.

@Stephen R.It doesn't appear from your description that what you wish to do will be doable in order for you to be in compliance with the IRA. 

The other side of that equation is that there are a few quality companies operating in what appear to be subpar long-term investment cities.