.* In my world (Bank) a "Foreclosure" is a property/loan that has a filed notice (Often referred to as first legal) that a foreclosure has commenced and is somewhere in the foreclosure process between first legal and sale (or post sale redemption).

Also, multi-unit sales involve more legal and financial nuances than single family homes so it will be in your best interests to work with an agent.

Do not rely on it for legal advice.

Once you have the property converted to two legal units, it's going to depend on business vs. personal useage. 

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

My guess is You will need to go through a foreclosure process in this situation as a legal remedy.

Legal competition has cut the cost of a Reg D offering from $25,000 to $8,000.  

Finally- you can eliminate 95% of the troubles and risk by simply having professional and legal screening and management processes, so don't sleep on that piece. 

This increases the perceived risk and perhaps the legal fees to put in place and then defend if necessary. 

Do not rely on it for legal advice.