I'm pretty sure it is not safe and would like to ask if you guys can recommend any steps I should take to stop this?

It seems as a safe and good plan in long term... but what would happen if the economy cracks again (I dont see the economy such an stable thing nowadays) a % of people loses their jobs, the vacancy rate rises, and the values of the property goes down and you still have a big portion of your mortgage to pay?

The reason for this is that when a loan pays off within 6 months, the original broker/banker may be asked to payback any money they were paid on the transaction.

You really are a transaction engineer!

After being referred to a REA / investor who agreed to be a mentor and had tons of experience I was told, recommended a low end " safe" property for me to start with to get my feet wet.

Those that do usually get bitten back by a still bigger dog, so you're in a safe place.Whatever else you do never ever stop learning and taking action (in that order).Happy holidays!

Agents Involved in real estate cash transactions.  

Is it best to offer a "subject to" type transaction to the homeowner, catch up her payments, and assign/rent/wrap/etc if the home doesn't meat the common 70-75% ARV minus repairs?

So long as you are not pledging a personal guarantee - and thereby providing the lender additional recourse in the event of a default by pledging your personal assets as security for the IRA's debt - then the source of the loan does not matter.Most private lending transactions, especially owner-financed notes, are non-recourse in nature.

The contract change after ratification is the safer route  I have done 200+ HUD transactions