I'm looking to sell it for what I can, but since rezoning it back to multifamily so that the current structure is usable could raise the value, is it possible to start a rezoning process while simultaneously marketing a property for sale, or in the case I find an interested buyer, could I sell it to them and then have them pick up with a rezoning attorney where I had left off in the process?

Most REO's will not allow you to assign the contract, which means you will need to conduct a double close/simultaneous escrow. 

I've had success making two simultaneous offers in a couple of cases.  

You don't put the houses "on the note as collateral", the lender will be having you execute a mortgage simultaneously with funding the loan/title transfer.And, You can Not release the seller as a guarantor on the loan, only the mortgagee can.  

@Joe Villeneuve  my credit is admittedly bad, 660. this is not because of bad spending habits but because i took bad advise on how to build credit last year and opened four cards simultaneously and haven't used them enough to help my credit rating.

They will simultaneously report to all three credit bureaus on the overdue amounts.

Feel free to contact me;Corey WhidbeeTypes of Notes Purchased1st Liens on Residential Seasoned or New Notes2 Liens on Residential Seasoned (Balance must be ½ of the 1 st)Simultaneous Closing on 1st Lien Residential and Commercial1st Liens on Commercial (No 2nd)Portfolios of Performing and Non-Performing NotesTrust Deeds / Deeds of TrustLand ContractsBalloon NotesReal Estate MortgagesFull or Partial Note PurchasesMobile Home with LandSmall Notes- Minimum Amount $20,000 Large Notes (Individual Notes of $1 million +)Account Recievable Funding (Invoice Factoring)Acceptable Types of Real EstateSingle Family ResidentialMulti-Family PropertiesApartment BuildingsImproved LandUnimproved Land Commercial Properties (All Types)

My question is this - If I have to do a simultaneous close as opposed to a contract assignment, will I be on the hook for any property taxes (even though I owned the property for only a few minutes)?

I will say I learned several things through the process:Assignment of contracts and simultaneous closings, two ways to tie up a property and sell or assign to an investor, without my own money, protecting my interest and not getting circumvented.There are hard money lenders out there willing to work with you at not so unreasonable rates.You have got to move quick on getting your offers written up and submitted with all the other documents you need.

Then do a simultaneous or double closing.