In both types the lender is allowed to seize any assets that were used as collateral to secure the loan in the event of a default.

I would not sell it owner financing, if they default you up for a long haul foreclosure.

Seems like they are almost pre-defaulting before they move in by giving excuses today.You should have a system where potential tenants understand until ALL obligations are met for move in and money received that you have a " right to continued marketing " on the property.    

A one year option with an option to renew 4 times is a 5 year option in reality.Options must have an expiration date, it's not that your option "could expire" it will expire, there is not really a default in performance as no performance can be required.

Since my earlier post I've gotten a response from Escrow company that's working with a Title company that has acknowledged a "notice of default" now I'm just hoping I'll have a little time to provide a solution that the owner will agree to.

A combination of many things including the slower rise of real property value (opposed to the coasts) and typical delinquency and default capital demands burdened by the Borrower when delinquency or default occurs.  

If you agreed to have something financed and go into default they deserve to recoup their monies.

Notice of default (foreclosure).. constantly stay in their ear , from start to finish.6. discharged/dismissed bankruptcy cases (get from pacer)7.Tax lien sale- published in legal news papers when auctions come up8.

If the seller defaults, what are you legally allowed to do based on the contract terms?  

Also with this type of deal you have to have cash to bring the mortgage out of default.