Sale shall be for not less than 2/3 of the difference between the value of the real estate, as appraised, and the amount remaining on the mortgage of the Defendant, Bank.

If you obtain a property as an individual, you are at risk of being named in any lawsuit and would have to defend all of your assets including personal whereas in an LLC, the risk is insulated to the LLC itself. 

Example:  If there is a lawsuit against the property and you are named, your clients policy would defend you in court as an "Additional Insured of the policy".Hope that helps. 

I've often seen situations where the Borrower/Defendant claims the foreclosure did not extinguish their interest in the property and they are entitled to remain in the property. 

Right or wrong it will cost you to defend so it's best to try to get the deal closed if they are game. 

If it is not explicitly mentioned in your state tenant laws, you can do whatever you like - but with the knowledge that it should be defensible if you ever have to defend it.

@Anthony Wick Thank you for your post & for defending me.

So I am not an appreciation snob even though I invest in a historically high appreciation area (but I do defend high appreciation markets). 

Under RCW 4.16.020, your neighbor can defend any claim by you to actually own the land he has been using, by pointing out your claim is barred by the Statute of Limitations. 

They filed it in federal court and requested discovery and a trial. it would of cost me around $40k to defend it even though it was completely illegitimate.