It is a judgement call in which criteria include active participation, passive participation, purpose, etc.In any case, since no general solicitation or advertising was done, the deal probably qualifies for exemption from registration under the private offering exemption, or similar such on the state level.No formal Reg D would be recommended as this is a small transaction.  

Once the judgement is in place, they then can and will garnish your wages and bank accounts.

If they do not agree to pay rent while you look for someone new, you can take them to court for rent and get a judgement against them.

When people throw themselves out there as private lenders, professionals and in the investment field AND can help you find a deal, sounds kinda fishy to me.The private lenders that I know dont need to advertise that they have money to lend, they just make relationship judgements and lend to people that they know.

We've been trying to get the final tally so we can file a judgement and have the security deposit transferred to us.  

I moved out and came to CA a few years ago and kind of let it go and now it's with the land bank of Detroit with a default judgement pending for being vacant and a nucience.  

Unfortunate the lien came up on title but it's been my experience that most of the best sellers I come across that are willing to give up a good deal are somehow not able to because of unknown liens and judgements. 

We just took a property that was in mortgage foreclosure but they didn't pay off the tax lien before our judgement was final. 

One question - someone's personal liens that are not on the property - like child support judgement or income tax liabilities - are you saying the buyer will have to deal with them?

My understanding was that even if there was judgement and a scheduled sale date the loan (along with all of the current penalties and fees) could be paid off before the sale.