The DA declined to prosecute her on charges of Defrauding an Innkeeper which, surprisingly, has quite a hefty fine attached.

RCW 9A.52.090    (Revised Code of Washington)Criminal trespass—Defenses.In any prosecution under RCW 9A.52.070 and 9A.52.080, it is a defense that:(1) A building involved in an offense under RCW 9A.52.070 was abandoned; or(2) The premises were at the time open to members of the public An owner may, through words or actions, express or imply that he/she no longer has interest in the property. 

“I have friends on Wall Street, but I find it unbelievable that we could have a collapse like we did and only one guy gets prosecuted,” he said.

So, if you are concerned about the law, Idaho Code §74-120, then I highly recommend checking to see whether there has ever been anyone prosecuted for violating that law (doubtful).

They will prosecute you and the courts have already held that "entrapment" is not an allowable defense.Once you have that all figured out, it's time to move forward.I have long been a fan of Plymouth and Bristol counties as the places where an MFR buy can still make sense. 

There are plenty of cases of prosecuted loan fraud based on this very issue.

The actions you described in "Getting around the rules" and "finding loopholes" could be prosecutable at most and are  unethical at least.

I would ask her to call the cops next time she sees one, so they can arrest and prosecute the ghost for trespassing. 

Turns out the son is a juvenile-my wife got a message on her phone from the County Prosecuters office- juvenile division.

Just a waste of time and energy.Kind of like getting pulled over for a DUI and asking the prosecuting attorney to represent you.