I don't see how they have a leg to stand on if they don't have any type of contract for the work done but I'm not sure how to use that to prevent this action from being taken on me. 

@Christian Bors Is talking about CARPOA (Capital Area Rental Properties Owners Association) they have a membership fee, but some of that money goes to legislative action.

Another option is to find a experienced wholesaler and help him until you learn the trade on your own.As per finding deals, there are many many ways.

I've decided my first course of action is to get the third party authorization and see if Bank of America has not foreclosed for a particular reason (i.e. have they already gotten an unfavorable Phase 1?). 

Follow that up with whatever other actions you need to. 

(Depending on if you were day trading or buy and hold strategy that would determine if you pay capital gains tax or ordinary income tax)Let me get to my point....

So to me that trade off is worth it and I'll look at other deals from a hard investment stance.

Your seller hasn't had much action on this thing, you may want to call them and say you want to close 3 weeks later and see what they say.Depending on the lender, the two loans shouldn't be a big deal as long as the cash reserves are there, assuming both loans are Hard Money. 

One option of course is eviction with the aid of an attorney and the courts... emphasize this is a bad choice for him (which it is) and no action means that the family will pursue that option.

Third, yes, you are correct, you must trade equal or up in value based upon your net sale price (not profit, taxable gain or equity).