That said, as @Henry Clark mentioned, unless you can figure out an elegant solution for drop off/pick up a daycare would be a very challenging business to put in that building. 

Solutions?????

Well in this case, the solution seems fairly obvious so this may not be of any help to you, but if I were you, I would leverage the 3/1 that you own (cash out refi) and use the $ to renovate the upstairs unit.

It's time for solutions.

So what I hear you saying is that bankruptcy puts a temporary halt to the foreclosure process, but is not the end/solution to the problem?

I know he will be the one to set the true reasons and motivations, but the better prepared I am to have answers and solutions up front, the better chance of closing.Hope that makes sense.

So we are in a catch-22.Is there another solution?  

Why even consider eviction when there are better (cheaper) solutions like this that are win/win.One thing that will help is stop parading all the buyers through the property.

Just looking for creative solutions to add value to the seller to get something of value in return. 

That being said, why not having a contractor stop by and figure out the best solution and type of wood?