You could sell your partner's 50% equity interest to another investor using options.

Right now if I sell them, I'd break even after transaction costs from selling.

So as of today it's been a rental for 3year and a month.It's being discussed to cut it loose and sell it.

Save it up for when you sell. 

I proposed fixing it up and then selling it on the market and the family agreed.

After that, I'd refinance and either rent it out or sell/1031 to get into my next property after that that will hopefully cashflow, or I'd rinse and repeat since I have one small rehab under my belt at that point. 

So he's going to sell the 2 acre lot which would net hopefully about $160-170 after fees.Firstly, do we have to make the current one an ADU? 

A 13 is what will cancel a foreclosure IF the borrower completes it, which takes 3-5 years or, court approval for shorter period.I agree most end up not going to foreclosure sale but, my experience is they don't' because they sell before sale or otherwise reinstate.

just selling a product (that I had no interest in).Any help is greatly appreciated!

You also really need to be a with a good real estate agent who knows these objections you are trying to fulfill upfront, and not just an agent who wants to sell you a property.