Then leave the ball in their court.

She was a smart cookie though; responded to the dispossessory affidavit which required a court hearing to determine whether the request for an eviction should be granted. 

If you have enough to proceed with a multifamily purchase in order to house-hack.... then purchasing a condo and waiting for a couple of years can seem like an unnecessary delay.

I called their office multiple times to remind them to do so , so I can get a court hearing date.

@Rick AlbertYou said you need to refinance to get out of the current FHA loan in order to proceed into the next one?

We are quite concerned with shielding ourselves from liability, and we read that if we purchase a property in our name and then transfer it to an LLC, a judge or court could come after us because they look back 2 years at all people/entitites to see who to sue.

This was the guidance I had read in several landlord publications.Their response was that they were hoping I could rewrite the check to them personally because they are still several months out from completing the probate court process.But here is the added context as to why this might be acceptable:The daughter in law was originally the Guarantor in the lease and actually wrote the check for the security deposit in the first place several years ago.

I now have a judgement to reclaim some of the lost $, but she has been totally silent and has not replied to any communication, nor shown up in court. 

PM said tenant will need to appear at bankruptcy court in order to continue to stay. 

There are lenders that will do them, to be sure, but the easier way to proceed is on an owner occupied house.