However there is no formal "association".

Where is property, what's price point -- no granite nowadays, go with Caesarstone (or Corinthian) -- less than marble but a little more than granite -- don't get granite -- not so hot anymore; change cabinets; open kitchen; LESS rooms is desired -- if you have formal living and dining and separate kitchen, see if the architect will let you tear down all these walls. .All you want is a GREAT ROOM with kitchen, living, dining, separate bedrooms -- AND MAYBE -- if you have room, a home office/den/office (no windows needed).... appliances -- Viking/Wolf will do -- no need to go to Miele or Gaggenau for middle of the road.Fresh coat of paint of course.

My research on the internet tells me that I can do a non-judicial foreclosure, but whenever I try to get more info, I'm told that I must have a lawyer do it.

I won't do anything formal.

I first approached him about formally going into business together in a new LLC where I would bring some cash and all the work and we would just be an equity partner.

I also prescreen on the phone for any inquiry if person has been arrested for a felony and also how their credit is.After I exhausted all the free avenues then I go to the website credit agency to do a formal credit and background check.

In your situation as you describe it I would look for high rents vs. purchase price, think fixers or the non-judicial foreclosures they sell on 5th and SE Hawthorn. 

Seems funny to me, but he's checked w senior agents and his insurance underwriters and insists this is how he has to do it.I formally had my car and motorcycle with esurance and Geico before, it's something I regularly shop to make sure I'm getting competitive rates.  

Just wanted to make a formal introduction.

If there is a redemption period, you might find that the state or local law will permit other creditors to exercise the rights of redemption.In some states (such as my state of PA), acquiring a property via a tax sale purchase will typically be a "subject to" type of transaction: you take over the property "subject to" all existing liens remaining in place (except that you have paid off the taxes with your purchase money) - they aren't wiped out without a special judicial action.Other than that, Bill is correct - you did not agree to anything via contract, so you are not obligated.