For example, my dad spends 1-2 weeks a year logging income and expenses and doing the company books, rather than tracking transactions as they occur.

When you allow dogs you accept the fact that damage occurs and you simply build it into your rent.

Please correct me if I misread, but I just wanted to clarify that it would be unusual for this occur as many private and hard money lenders have a requirement that they are the first lien-holder on the property (in other words their lien is the first one recorded in the property records and above all else).

I live in Dallas suburbs(Allen/Plano border) and I must say that a lot of people are trying to purchase these properties for remod, but the majority of property sales is occurring in the North for new builds/prop less than 10 years in age.  

If you think you will go FHA, Conventional, 203k, etc. and then Quit Claim the property, to a LLC, or a Land Trust you run the risk of the lender discovering a Title Transfer occurred and activating the "Acceleration Clause" or "Due on Sale Clause" that requires the loan to be paid in full, within 'x' number of days.

We are in the week that closure on the house is supposed to occur (forclosure next week), everything is in line to close.

If one owners child was in an accident and let it go at a fire sale price does not mean this other one will.

And it occurred to me that someone may have already done this. 

These two factors can occur at the same time.

Auctions - again depending on the state these occur after the filing of either a notice of trustee sale (non-judicial) or notice of sheriff sale (judicial).