Given what you've described, you should be fine renting the house out as long as you sell within the next 3 years (so last 2 years count towards owner occupancy).https://www.irs.gov/publications/p523/ar02.html

Then she can sell it and satisfy the institutional lender.Don't know about Texas, but the foreclosure should be around $3K which could be included in her opening bid at auction (plus fees etc).Because it's a public auction, you run the risk of a third party buying it.  

I have followed cases with the same complaints (many in the Public Records Act cases where LNI refused stubbornly to give up records) but the problem is that LNI is defended by the Attorney Generals office.

This is interesting, here's my take on it.Criminal background checks are public records, so you can run it or search the local public records for the names as often as you like.  

All I can say is that I went to public school.

Are you aware of any good publications that can help me figure out how to run a real estate syndication more efficiently?

He ended up searching public records to find a reference to it being a tri-plex before the zoning laws came in to play.. from there he was able to get a certificate of legal non-conforming use.

This is the type of question I wish I could answer honestly but then I remember this is a public forum. 

I took on a couple of short term contracts (I was doing investor relations for publicly traded companies) to carry me through, then focused on learning everything I possibly could about real estate investing.

In some states the data goes into public records.