I don't believe we will see something like the 2008 housing crisis, but foreclosure should be avoided at all costs so home prices are not negatively impacted. 

You don't want a conventional loan crossed over two properties as you would be forced to sell at the same day.

Too many stories of how the buyer lost their cash in the deal and the deed was forced back to the owner, should the owner hire a crafty attorney and charge you with fraud, misleading the seller, blablabla all non-sense, and all solved by only doing creative deals where the owner/occupants move out prioor to closing.If I guess corrrectly; this guy is a nut, wishful thinking and you should make a written offer,  based on him moving out prior to closing.  

As such, it is not impacted by the referenced legislation.

You should still be looking for a good value add property that you can force some equity into.

You may in fact be responsible for rent until the landlord can re-rent the unit, but the landlord also doesn't get to "double dip" (charge you 3 months rent if s/he rents it out in a month).In practical terms, you may have some leverage as far as mutually agreeing to end the lease, vs. forcing the landlord to evict you to regain possession of the unit, especially in the current environment when the eviction courts are quite backed up.I'm definitely not a lawyer, and you're asking a legal question, so I would urge you to consult one on this.

**We will be calling each company as need for the property to get any impact fees.

The one wrinkle to put into the equation in the world of real estate is the impact by third parties on the transaction--particularly the appraiser and the lender.

House has room for forced appreciation as the kitchen and bathroom could use some renovations.

About 15% from forberance are forced to sell, but not necessarily forclose.