How about not having to deal with a bank for starters.

While Banks continue lending money hand-over-fist, you'll continue having this problem!

All while staying in your coop.If you go this route just make sure you check some local banks out first who gives a good LTV on the refi and have No Seasoning restrictions so you can Cash out refi immediately once the units are occupied.

Should I contact her bank first to make sure they know what' going on ?

Will the escrow or closing agent or attorney  just wire the money to my Canadian bank account  or do I need to run it through an LLC and then into Canadian bank account? 

The incentive for the seller (who's already had one deal go south b/c of buyer financing issues) is a quick close during a slow time of year and no bank headaches.

I have found a property that I believe, the bank doesn't know they own.

The bank is TD so I am assuming they generally play it safe and don't want to risk it.

Also, Brookland Park Boulevard is undergoing a transformation near Chamberlayne Avenue that may help Highland Park as well.Still, I don't like to bank on appreciation with real estate investments and I don't think that the housing stock in Highland Park will lead to the high end renovations going on in surrounding neighborhoods.

@Scott Rosslow This is a longshot but you might consider going to a local bank and asking if they have an insurance broker they use for their clients with income property.