Technically, the property still belongs to the borrower and you can't sell what you don't own.

Me or the neighbour where the tree belongs to?

Thing is, this house was poorly remediated, they didn't cut high enough or even let all the furniture, belongs, etc. to air out.

So if you have a $200K house, you don't have to have $200K of coverage -- $100K would be more than enough to pay for any repairs -- plus whatever amount of insurance to replace contents/belongings. 

I'm assuming they'll need to have their own renters insurance because my homeowners insurance won't cover their belongings.3) I don't close on the property until the end of June.

In that case, all returns - return of capital plus ROI per the agreement- belongs to the IRA.

[MP] No, and they belong to different places. 

I'm hoping one day it will but for now, it would have to be long-term renters..so probably less lucrative.  

In Dayton, the houses belong to the sheriff at the point of auction.

We had to wait a bit for the family members of the tenant to move out the belongings and our handyman had to finish another job, so this turn did take us about 1 month to get filled.