Having a formalized lease gives you the basis for doing an eviction in three months when they refuse to leave.

It's a formality for the most part.3.

I've been a real estate investor and realtor/broker for past 15 years and formally the President of ALLREIA (Alliance Real Estate Investors Assoc). 

Unless you follow proper formalities in running an LLC (or any other entity, corp etc.) the entity can be pierced.

There are two types of foreclosure, a judicial foreclosure which is a matter before the court and no-judicial foreclosures where the power of sale is vested in a Trustee by agreement.

Depending on the state and whether it is judicial foreclosure or Trustee sale, if the house sells at auction for less then is owed on the loan, the homeowner in default could be held liable for the shortage.

There are no redemption rights for homeowners after the judicial sale, in Illinois.

Have a solid plan when you go in, not necessarily a formal business plan, but a game plan in your head that you can explain to them.

You also need to understand how finance and security regulations are intertwined with other laws, they rarely stand alone as our economy is a very deep subject matter with roots.In my opinion, really, people who have no formal training in finance or law can attempt to study things on their own.

Arizona Revised Statutes, Section 33-742 stipulates a forfeiture process (that is much different than a judicial foreclosure process) that is followed with most land contracts.