@Matthew Fortune Title insurance would not only cover your loss, it would cover the legal bills required to defend/prosecute your case.This is a no brainer in the REO scenario.

It may take a few months to get a solid case for prosecution and also they won’t be able to put all their small staff on that single issue but that is the proper way to deal with it.

People have even been criminally prosecuted for knowingly enabling a dangerous situation.

Misrepresenting or using fraudulent cooked up documents to induce a contract is a serious prosecutable offense and definitely basis for voiding a contract at the very least. 

It would be in his best interests, even in just a professional capacity to reach out to the investigators handling this case to provide whatever information or contact he had to assist in their prosecution…and if he didn’t offer that I personally question what role he played in it all? 

They may not prosecute, but they will cancel a contract on the spot.

He may also be willing to pay you back entirely to save his reputation and avoid prosecution for fraud or acting as a GC without a license. 

If you get a NOD in the mail on the first and you as the investor just make the first payments you eliminate all those expense. and you then prosecute your foreclosure on the second.Now if you and your friends are buying very low value notes behind very low value first that's a nother kettle of fish.

They can, and they absolutely do, fine/lein/prosecute/whatever, people attempting to circumvent student housing rules.Furthermore, Airbnbs and the like are not currently allowed in these zones without an exception from the ZBA (good luck with that):Section 175-53.

If somebody was trapped in a fire in one of your basement "bedrooms" without windows, you would be personally liable and in some cases besides fines could be criminally prosecuted and go to jail.