The buyer takes over all maintenance, repair issues but the seller can get the home back  if the seller doesn't pay.  

plus for me were we bought up in Summerlin I like the fact that there is no traffic and its master planned gated communities so I can lock and leave.. here in PDX our roads are becoming maxed out and traffic is a major issue..

On top of that, the HML might not care about wonky title issues, but Fannie certainly does.

I think there is some lag time on the update but so far I haven't had any issues.

Those are likely lipstick on a pig improvements though as the complex is in a rougher part of town so tenant quality would be a primary issue.

Person who lost it often has a right to redeem, so no title company will issue insurance in the meantime.You can rent it month to month in the meantime.You can leave it vacant.You can live in it.You can sell it to some other investor without title insurance and a clause to warn them about the redemption rights.

If so, how do I document the late payments so the paperwork holds up later down the line if there are more issues?

Proof of funds is needed and many times you will loose your deposit if you can not close  Proof of funds isn't an issue but what if I want to use financing and not pay all cash for the deal?

So technically you will be living there and not collecting rent.

If you are renting room by room this becomes less of an issue because you just replace the tenant in that room which from my experience is pretty easy in the DC Metro area.Good luck!