In terms of legality and contract law, doing anything other than stated terms would be breach.That said, you have to decide if you're going to "follow the law".

Additionally, if you live there for two years, and have good appreciation, you can take up to $200,000 in gains on your home with no tax on it.This article explains it: https://www.nolo.com/legal-encyclopedia/the-250000...Good Luck!

Being in foreclosure has no legal bearing on the deal, except maybe you’re on a clock.  

@Daniel Pitta LLC protects you legally.

But security breaches at accounting firms and legal firms are contributing to the plethora of tax information available at rock-bottom prices online, according to a cybersecurity executive.https://www.cbsnews.com/news/tax-return-criminals-..."

It is legal to send them mail, however I wouldn't mention right off the bat that you know it is in pre-foreclosure.

I am not a lawyer and have nothing useful to say about the legal aspects of your situation.From a personal standpoint, I would assume there may have been a financial and/or time reason for her failure to complete the quit claim deed. 

I am not 100% sure on the legality or fees if any on either, but worth trying.

You will have legal protection through the LLC and it will act as a pass through as far as your taxes are concerned. 

Separate accounts are also crucial for the legal protection if you use any legal entities for Liability protection.