The listing agent should be able to go to the servicers and explain why there is a delay and ask them to extend the date on the approval letter and then you and the seller signing a closing extension.There has to be some procedural hurdle that is holding this up.

Following proper legal procedure is imperative. 

Process > Procedures > Workflow > Accountability to yourself places a big part in your investments.

I am fearful that they will have to amend the mortgage to contain the proper legal description of the property and re-do the entire foreclosure procedure with the correct legal description.

Assuming you were dealing with the same bank that foreclosed, if you had a deal, the bank should have been able to stop the procedure.

What I am looking to do is invest in property for the same reason renting it out as airbnb but I need to guarantee that I'll have a good return at the same time, also more information in the procedure in buying a unit.

I am not sure exactly how you would do it procedurally, but you just need to record it as a deferred gain( future liability) and keep the original asset at the cost basis less depreciation and you can either rename to new property name but most important is to record the gain and depreciation recapture taxes that would have been paid, but for the 1031 exchange, as future liability on the balance sheet and no income statement items are affected, only balance sheet items are impacted.  

,Yes, 1031 is possible with a syndicated deal if the same LLC that sells a current investment buys another one as a part of the exchange procedure.

the procedures will be different and cost for the money will be more than a typical hml. 

---So, ask about their standard operating procedures and make sure your management contract has an easy termination clause.What are your options if you experience one of the above?