What proposed financing options would we be able to accept, and would non-permitted rental units default this home to not being passed by any appraiser, or would the appraiser leave out the rental units in the appraisal?

Hey @Jona Leu I have been in your position and generally default to using option 2 as I've done both in the past numerous times.  

The buyer was in default of the original agreement as set forth in the Contract.

My question is what actions can I take at this point to own this property despite not having the support of all the owners listed on the deed and taxes on the verge of default?

My favorite: will you mind owning the asset in case of default. 12.

From his perspective there is the possibility you pay for 3 months, let the place go to #$%^, default, and now he has an even worse situation than just your defaulted payments.

Otherwise, what value is there for the seller in taking the risk of default?

Because isn't doing a subject 2 you're just taking the deed to the property and paying off the default amount and bringing the mortgage current and paying them some cash to move out so you can rent the property out?

Gloria, I'm a bit perplexed - Self Storage has the lowest loan default rate for all commercial Asset Classes - It's the Darling of Commercial Real Estate.  

Have a plan, build a relationship with someone who makes the decisions, and most importantly show them that you will never default.