We had a friend who borrowed from another friend to purchase & rehab a trashed REO a few years ago.  

Get the borrower to re-perform.

Almost all of that money was borrowed from investors.Today, my situation is reversed and I am the investor in a number of communities while someone else runs the operation. 

We would probably need to borrow money for the repairs.

Are they borrowing?  

I've borrowed money from a hard money loan, and have had to pay double closing cost each time.

I need a project manager on the ground there to help me get it cleaned out, get some repair estimates and get it sold to an owner-financed borrower.

If there is a redemption period for the borrower following the foreclosure that Supposedly has already occurred, then you simply buy it (she assigns you her redemption rights) for the balance due....that's what a Right Of Redemption for the owner is.

I finding though that Banks tell me if I'm borrowing through the llc, I have to go the their commercial lending department which charges higher interest rates and shorter terms.

Buy good deals, don't borrow too much, have cash reserves.