Then, if no one steps forward and the redemption period passes, your attorney then can start the judicial Quiet Title action, which could take another 6-9 months and $3,500-$6,000 in attorney fees and court costs.   

The sheriff probably wont tell you much, but the liens will be removed during the foreclosure sale, however the IRS does have the said right.NJ is a judicial state and the following comes from the IRS website.In accordance with Title 28 U.S.C. § 2410(c), the Internal Revenue Service has the right to redeem real property which is sold in a judicial sale where the United States position is junior to the foreclosure party.

Alex, while LLCs have become the preferred entity for real estate ownership, and they can be very simple for single owners if the formalities are respected (liability shield, but invisible for federal tax purposes) at a relatively low cost, it gets more complicated with partners and/or if you may use 1031 tax deferred exchanges as part of your exit from any properties.  

Foreclosures in California are by the power of sale clause, meaning a non judicial foreclosure.

Unless you are personally in this bracket, it may be best to have the income taxed in your own hands.A company brings with it additional reporting and tax filing obligations as well.When it comes to working with your wife, you could formalize things with a partnership agreement (though you did that when you married) or you just could purchase properties in both your names - as either join tenants (the default) or tenants in common.

I'm doing this for my own investments only, so I don't need any formal training, office space, generate leads etc.

Here there needs to be formal correspondence (letter via USPS) telling the tenants of the change and where the security deposits now reside. 

They will have a formal training program.

Anyway, we had people we could call if something was needed but we didn't set up anything formal with the tenants.

There are 7 public hearings over 7 months, but as long as the city planner and neighbors are ok with the rezoning, it seems to be a long formality.