This of course will vary by market.

Your borrower should have purchased a vacant dwelling policy with course of construction and builders risk endorsements, @Raj G. . 

I have 4k saved currently and plan to continue to saving over the course of the next year.

I have completed about 75% of my License course to become an agent.

If I had a tenant with a dog I would make them sign a pet addendum of course, however it is a different scenario because they would own the dog, not me.Not trying to be combative with you, just trying to understand your thought process.

Pasadena has had a low inventory lately, depending on the price range of course, so finding a buyer shouldn’t be too difficult.

Yeah, the title co. missed the tax foreclosure, but in the end You sold something you didn’t own......of course you owe the money back.  

With my work/family schedule I need to take the course online.

Of course talk to your lender and accountant first. 

this would require a rezoning and submittal of plans of course and we are considering that option as well.