Finally overcame my analysis paralysis, took daily actions, and finally found my first project in south LA.

(no consumer debt)Your mortgage is paid off (appx 380k)You guys are empty nestersYou have invested in residential real estate with positive cashflow, but nothing to write home about!

Some random thoughts, although more time consuming, you stand to make more money selling the SFH to owner occupants. 

I still would not apply to me...per the definition of "commercial solicitation" in the state code at https://www.scstatehouse.gov/code/t30c002.php(3) "Commercial solicitation" means contact by telephone, mail, or electronic mail for the purpose of selling or marketing a consumer product or service.I am in no way warketing a consumer product...or to consumers for that matter...

I don’t know the courts well enough to know if there is any one or a combination of an older seller, potential for loan being seen as a personal/consumer loan and the rate of return would be enough to cause this deal to be completely dismissed as a consumer loan if I had to bring it to court for non-performance.Thanks in advance for any thoughts.

I even got a minor raise at work (which helps but am still short) and I am planning on moving in the next couple of months to bring my rent down about $200, also, I have $0 in other debts (student loans, consumer, etc.). 

I know I'm new to real estate investing, so I have been consuming a huge deal of information recently (Thank you, Bigger Pockets podcast!) 

Are you familiar with this or is there any other course of action you suggest to start the fight?

A bankruptcy filing doesn’t negate a foreclosure...it only stalls it for a couple of months.If someone buys at a foreclosure auction Without knowing they are buying from a second mtg foreclosure, and are at risk of the first mortgage foreclosing, they have no business buying through a Legal Action against someone else.....they should stick to safe, normal transactions.And so that everyone knows....when you bid online at any FL foreclosure auctions, you have to acknowledge several warnings that these properties may not have clear title, there are risks involved and that you should consult an attorney if you don’t know what you’re doing.

This was a powerful demonstration that action is more important than anything else.