Having done hundreds of these, and reviewing thousands in seven different states, I have never seen a loan move directly to foreclosure as it would with a default in payment, when the original lender has barked, or the note holder, has gone this route.

Its been on market 40 days.I told him I need to do some more due diligence and will get back with him If i decided to put an offer in.I think this is a possible wholesale reo deal.Problem is I don't how to submit an offer.Dont have any end buyers lined up before hand.Maybe im barking up the wrong tree.Anyways let me know either way.I am newbie who has been reading and reading and reading.

That way you know about the funny smell that always lingers, the jerk or barking dog that lives next door, or possibly even previous issues with the house. 

I asked the tenant if it was aggressive and she said no, it doesn't bite, it just barks.

A Series LLC is nice for this type of structure, BTW.Otherwise, you're gonna be barking up a very tall tree. :)

I might be barking up the wrong tree trying to sell RE as an agent when I might be able to achieve cash flow in a different avenue of RE.

You've got a lot of lessons to learn and several of them are bound to be expensive but you can survive them with cash.If you have decent credit you can walk into most barks and get a signature loan for $5 - 10k which would have been enough to fix your problems up front but may no longer be.If you leave in NYC and own a rental in Cleveland, get a real Property Management company. 

I'm more worried if I'm doing anything illegal or barking up the wrong tree.

I told him we have 3 options(as I hear a dog bark that's not allowed). 1 He could walk away no hard feeling. 2 keep the current lease. 3 start a new lease with me.

What if you get a complaint from the neighbor that dogs are barking all night...but the tenants aren't supposed to have pets?