I have a good understanding of the rest of the process and don’t have any problems with the collateral portion of the loan, but I am concerned that my DTI could give me problems depending on how much rental income the will count/ what expenses they add to my debt or subtract from my income.

For example, I think we are late cycle, so I lean toward the safest part of capital stack which is debt (or debt free equity).

la=enIf the judgement debtors redeem the property I’m assuming I get my money back.I would love analysis on this auction in the morning and whether I should got try this.Thanks

Without going into the fraud and embezzlement by the judgment debtor, I will just go into the specifics of this unique collections situation.10 years ago, this husband and wife were investigated by the state attorney generals of AZ and NV for fraud.

Without going into the fraud and embezzlement by the judgment debtor, I will just go into the specifics of this unique collections situation.10 years ago, this husband and wife were investigated by the state attorney generals of AZ and NV for fraud.

He has a first and second mortgage and he knew that I was going to put a judgment lien against his house for the $50,000 amount in 3rd position as soon as I was legally able to do so.Days before I was able to file my stamped Abstract of Judgment the LA County Recorder’s Office, the judgment debtor filed what is classified as a "private party lender" lien TO HIMSELF for $89,000!

The debtor still has the ability to use the courts, including bankruptcy court, so the above benefits may be relative, not absolute.Contracts for Deed , like owner financing, is used when either (1) the borrower can not qualify for conventional financing or (2) the property doesn’t qualify for conventional financing , or (3) the sale needs to take place quicker than a conventional loan can be put in place, or (4) the parties want to keep the current mortgage note in place, or (5) the seller wants to obtain a higher yield on some of his equity capital.Historically, contracts for deed were often times used for low end properties and buyers with no ability to obtain financing.

In my state this usually closes the estate and keeps other debtors from harassing them for payment.

So im assuming many investors do not have student loan debt, or do they just have it payed off?

Since this is your grandmother's house and she can't afford to pay her debt, you should probably do what's in her best interests, not anyone else's.First, if it's a temporary situation of why she can't pay her debts, have her call her lender and see if they can forgive the debt or give her time to pay it back.If keeping it isn't an option, then it should be sold with a Realtor on the open market for the highest price possible.