Could you share with me the address of those properties?

There is a big difference between the escrow/trust accounts of such an entity and holding your proceeds in an actual FDIC insured segregated account with a Federal Reserve chartered bank.  

Some county websites also have owner's address.

Investing from far away is always risky specially if you don’t know the area or if you donot have someone you trust to manage the properties for you. 

As Rich Dad Poor Dad indicates the knowledge is priceless and there is no way investing OOS with a PM you obtain the same type of knowledge 2) requires less reliance and trust on others. 

We know and trust the family and have no concern about getting paid, but we know there are risks and would foreclose if necessary.

Do you want to trust a complete stranger with your money? 

@Rick S.Full discussion of various issues in your situation could be really long, and it's best addressed in a private consultation with a tax expert. 

I personally would never loan money there ..but that's me I am used to deed of trust states and quick foreclosure time lines.

The deals that you will have to do will have to be either with a very trusting private lender, hard money lender, or partner.