This will alleviate some of your risk.Property buy Chase Field @Bob E. has a great point see if you can offer it to a neighbor, as far a rezoning great idea if you have the time and if you can afford to carry the property.

@John Baker, what I mean is that as an investor your business card just as all of your marketing should promote what you do; help alleviate pain from home owners with distressed properties. 

I was wondering if people had any real estate specific stress alleviation insights.  

We do also have a 24 hour hotline tenants can call for maintenance requests so that alleviates the calls outside of regular business hours. 

But I also think this will alleviate the crunch for rentals as these properties come on line. 

If Dodd Frank compliance is required and properly executedCrime rates, amount of investment coming into the neighborhood and other indications it is a desirable place to live and will be in the future.If you purchased a distressed house and rehabbed it, can you show evidence all repairs were completed. 12 months of seasoning and a clean borrower interview will go a long way toward alleviating this concern.Your ability to prove all payments were made on time.

You will alleviate any concerns by having an RE Attorney writing it up and protecting your ***-ets.

4) If the loan is in the sellers name, at what point can we eventually put a loan in our name and alleviate the seller of any responsibility?

With that said a LLC with a good operating agreement can help to alleviate most issues by anticipating them.For a good operating agreement though this is going to typically require an attorney who specializes in this type of work just because templates typically don't address all possible issues that can come up.

Not only does this alleviate a lot of the potential legal headaches, but cuts down on their administrative upkeep as well.