I HAVE A HARD CHOICE TO MAKE,MOTHER IN LAW 'S HOME IS A REVERSE MORTGAGE HOME,BUT IN FORECLOSURE PROCESS FOR INSURANCE LAPSE AND UNPAID TAXES.

I also researched that I might be able to file a motion with the court asking for "use and occupation" for the tenant to pay rents while the case is going on... but not sure if this is applicable for IL cook county and how likely will we get the rents...Can you provide me advice on how to proceed? 

Will keep the group posted for sure, as i know i will need more advice and guidance as i proceed further..

The insurance estimates I got was $900 annual premium for each duplex (at $140K replaceing cost).

They still will want inspections, appraisals, surveys, title search and insurance.

If you want to market the certificate, then you market it as a tax certificate and see if anyone wants to buy it.If you got a deed then you need to know if it's insurable or not.

There are some waivers and exceptions to the primary residence exclusion for active military that may leave you eligible to take some if not all of the proceeds tax free.By they way - a great accountant who knows real estate in and out just gave you some good guidance.  

Once that's determined,, you have what you need to proceed,, inform neighbor of infringement and to correct..

Not to mention upkeep (repairs, taxes, water, insurance) of her personal property (reverse mortgage) and mine.

If you do things by the book, provide habitable housing and insure yourself you should be fine.