The SO, who is now a fiance (I just declared this, grats and please give them the good news on their pending nuptials!)

In my area, there are companies who do everything for you, including servicing the loan, creating the correct documents and paperwork for the borrowers to sign, and they handle any issues with missed payments and /or a foreclosure.  

Here's what the code says.. http://iga.in.gov/static-documents/a/9/9/5/a9952b9...Broker's License(Salesperson License): Statute: IC 25-34.1-3-4.1You have to be 18 or older and no convictions(See link above)Have a High School Diploma or GEDComplete approved broker course(salesperson)Pay the feePass the testSubmit license with who your sponsoring managing broker will be.Managing Broker License: Statute IC 25-34.1-4-0.5Hold a Broker's license for 2 yearstake and pass at least 24 hours of broker management courses approved by the commission.

(she hasn't given any documents substantiating her claim, and is not on title) 2) IF it goes to probate court, is it so the Judge will decide who gets the house?

The "new" collection company now owns the lien and the lien is still attached to your property.This could be a good news for you now that the loan is with the new company.

You should also check your mortgage documents.

The good news is the property is in a very good shape!

The new loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs"...Or, as @Charlie Fitzgerald suggested, 25% down on 4x $100k properties to begin with (but, in accordance with my suggested "trick", each should already be worth $130k+)! 

So, if your documentation is in order, you are transparent and are playing within the rules, they should all be "investor friendly."

@David Zheng: Two primary things you have to make sure that all the agreements which are in place are still active and applicable, even after the sale of the ownership of the LLC, and the second is that the books and records, including accounting, sales, taxes and other documents are accurate since the beginning of the business.