IMHO, a more effective and longer term approach is to work with local trades and businesses to hire and train local youth to rehabilitate distressed properties and reintroduce them back to the community at affordable prices.

The guru's taut LLCs for asset protection, but don't discuss other side-effects. 

They have bought houses with in law suites etc. 

The average 35 year old still lives with their parents in Nj when they should have left by 22 at least Now it's to the point where if may effect markets for renters so should we just let it crash and then buy ?

If you like hands on Investing, a SFH or duplex flip might be better suited for you.

Does anyone know how the new Dodd-Frank lending laws will effect me? 

You can terminate any contract, however you can threaten and follow through with a law suit but still often times that will not work in your favor.

If you do that you will be subject to a deductible and it may effect your future rates.

I think your question is better suited for a lawyer!  

She finally very abruptly ended the call with something to the effect that she is buying the property, and they have a recorded land contract.