@Greg Lovern Borrowers frequently declare bankruptcy to prevent the foreclosure from proceeding.

I've found it's worth having binding documentation as it defines expectations and prevents future issues.Good luck!

That said, an experienced buyer would know that this needs to be torn down and built new because the regulation prevents a flipper from pulling a permit to spend more than $10k on rehab.Just something to keep in mind when looking at properties in the floodplain.

I started foreclosure and right before it was going to a hearing she hired an attorney, which took about a year to finally get them out (she was in an accident and getting a large settlement, so I agreed to another 3 free months and to release her from any liability). 

It's purely by accident but help me to learn about how the real estate transaction works.

You've just hit the big snag that prevents 1031 investors frequently from entering into syndications. 

Surprised that non-licensed contractor made it through underwriting. 203k are typically underwritten to death - including the GC - exactly to prevent things like this that make them so high risk.

Basically, I'm an Aussie, living in Israel, interested in US real estate.I sort of got into RE by accident - I was looking for a job in Israel, using my background in financial analysis.

Offer to make their payments to prevent their foreclosure, on the terms that they left the property.

It also depends on what locally is exempt from permits....in central FL a fence requires a permit, locally in San Diego CA a 6' fence that is no load bearing (it's not being used to prevent a person falling over a wall or something similar) doesn't require a permit.