You do have to get them to sign an ACH authorization form.

I only need to know who is the party entitled to enforce a note when it is endorsed to you and in your possession, even if it is for collateral.... the legal authority I have found solidly supports the party holding the note, period...so I guess that my question will remain unanswered...

What words should I use when trying to get authorization from the seller to negotiate on their behalf? 

When you say it is going to the county in one year, I assume that you know enough about Minnesota law to feel confident that the county will be receiving clear title, which you can then purchase.But here is what I suspect will happen.The taxing authority (county?)

*Mod's - if this type of post is not authorized for this specific forum, please remove as necessary*Hi BP,I have been doing what I can in my limited free time to educate myself on making the jump to commercial/multi-family investing. 

If you do a loan modification, you would be doing it based on the 80k not the 40k. if you go to foreclosure, you would be getting the 80k (amount owing to you) + fees, etc...If you do a deed in lieu, you would get the title and decide to rent it, sell it as is, fix and flip it, etc...if you authorize a short sale for 81k, then you would be getting the 80k and borrower will get 1k (Assuming total payoff is 80k). 

If your plan is to go section 8 it might not be a bad idea to go to your local housing authority in the community where the building is located just to introduce yourself.

That said, I have been aware of jurisdictions in the past which have permitted (or simply ignored) non-egress windows in basement units provided egress was in close proximity of the sleeping area  - I do not know if any authority would do so today.

The mere management of the LLC affairs such as having the authority to hire and fire the property manager and occasionally interacts with the property manager to discuss management of the real property would be considered as doing business in California.  

Also, on the joint accounts, I typically have to provide an LOE signed by my wife stating I have full authority and access to use the funds as I see fit.