Once that is over it is pretty normal process.If a house is pre-foreclosure and listed, the transaction is normal length unless it is a short sale.

@Laura Yates You're right - the landlord policy isn't going to cover most equipment failures due to normal wear and tear.

The normal course of action would be to file forfeiture, take the properties back, and resell them to someone who can make the payments.  

If evictions normally take that long I would highly consider buying in another area/state.Try cash for keys and see if you can get tenant to leave.If you are under contract and have contingencies like inspection or financing you should be able to walk away and not lose your earnest money.If you have the option of walking away offer 2 options1.

I know capex and a few repairs I’ll have to do early but is hypothecation normal or done often?

Do plan on starting up once things go back to normal?

This is my first trip lending on a deal, but I've run plenty of corporate A&D transactions at work and this was normal course of business.

Very normal.

The lender is willing to do the 80% LTV as normal and let the seller, my partner, carry a 20% note for the 'down payment' portion.

I know we need to decide but I am just trying to see how it is normally structured.