Even though you will be out of pocket up front for the expense, it will take years to get all of the tax deduction.5) Choosing your tax strategies with legal entities and exchanges will change the timing of your tax bill and the tax rate at which you pay.

If I don't, she will take legal action against me.

And if you haven't already, seek legal counsel with regard to your Purchase agreement.  

They are experts in cross border tax and legal strategies, and can provide a consultation for your best structure to use.  

Legal question for your attorney, not for the Internet.

I'm hoping to resolve the services issue so I can create a one-stop shop - from the legal side to maintenance.I'm really looking forward to learning about the problems you have seen as real estate professionals and how I can bring a solution to those specific issues.I'd love to also connect with people that want software developed as I am working with a few people in the US to create solutions for agents on how to manage their listings and clients.

And most important- how do you intend to identify & "legally control" what buyers are demanding?  

As well, the seller will have assigned me all the bundle of rights to the property, essentially, while retaining titular ownership in legal name only. 

"Pre-foreclosure" really only means "prior to the auction sale", not "pre-filing".That said, if there's still a hard-copy newspaper in your target area, check the legal notices, or try their on-line news website if it does not require a subscription.

The only further communication with the buyer should be the fact that if she pursues you in court, your lawyer will countersue for all legal fees.