things don't work out, she moves out with her 2 kids, and he remains with his child, you know exactly who's in your property.Following your process and being consistent is the best way to avoid trouble!

Lesson I have learned from this is to remain open minded no matter what the circumstance.

Therefore, just get sub bids on the remaining work?

If it isn't a short sale, your end of the job should remain unchanged.

A Section 8 inspector will inspect your property and if it fails the inspection your payments will cease but the tenant will remain -- it will be your responsibility to evict the tenant. 

I want to know if there is any website available that puts out close to that information for the remaining states?

Then the remaining $350/mo (10%) is my discretionary budget.Any comments or advice is appreciated.

If the property is then forced into a foreclosure auction, the first mortgage would be paid off, then any senior liens get paid, and then the lien that was assigned to you would be paid (in full) -if there is enough equity in the property, or you could win the property at auction for just what remains on the mortgage and senior liens.  

Currently I am in the process of paying remaining $1500000 that might take years.

A defaulting bidder at any sale or resale or any defaulting upset bidder is liable on his bid, and in case a resale is had because of such default, he shall remain liable to the extent that the final sale price is less than his bid plus all the costs of the resale.