My suggestion: complete Dave steps first, then do other things. 

If she is completely uncooperative, you'll be headed to divorce court.

The owner's mortgage company (USAA Nationstar) is saying it will take 9-12 months to complete the paperwork... seems fishy that it would take that long when they can underwrite a brand new loan in <2 months!

Ok guys trying to find some guidance my mother is moving back to Colombia and she offered her house to me for what she owes to the bank and that is 57k the house is probably worth 70, I'm tryin to figure out what would be my next step i will buying the house cash any advice would be greatly appreciated as I am completely lost on this

I think you might be getting it confused with Rollover as Business Start Up (or ROBS), which is something completely different. 

3) Is there any local or state registration you need to complete in order to supply housing to these tenants?

3) Is there any local or state registration you need to complete in order to supply housing to these tenants?

The laws are completely different, especially on evictions, if the landlord lives in the same home as the rental. 

There are still properties but I see so many REO properties completely over priced and have had offers turned away on properties that have been on the market for over 90 days and the listing price does not reflect a single comp in the area.

I finally put in the time and completed the task at hand.