The seller wanted to sue the investor/realtor for assigning the home to someone who ended up causing $15k damage, and the buyer wanted to sue the investor/realtor for the $15k assignment fee they paid about a year before the deal fell apart, even though they failed in their obligation to the seller and trashed the house.Long story short, both the seller and the buyer's attorney's ended up threatening the managing broker of the investor with a lawsuit after they both tried "legally extorting" a collective $30k from the investor/realtor unsuccessfully, and the managing broker started to panic as well, which also had a negative impact on the investor/realtor too.So here's the moral of the story:1.

I'm not a financial professional, so seek qualified, competent advice.If the property is in your name, the LLC / business entity structure will not protect you against lawsuits, etc.If that (mortgage deduction) is your criterion, however, you may want to re-examine your priorities.

Ok lots of miss information on this post as this is a CA foreclosure  not a Judicial sale like FLA or other states.1. if the first goes to sale with that equity position any money bid past the opening bid by the first will go to the second automatically.. there is no law suit in CA trustee sales its power of sale.2. the second once the foreclosure occurs both liens are removed.... from the property the second though does have the right to then sue on the note for a deficiency.. ( however Extremely rare on the west coast but it does happen).. but that just goes to the borrower not the property.3. if its a purchase money first thats being foreclosed no deficiency judgement is allowed.. its not like Texas were you can foreclose and get a judgement.  

Stereotyping can cause problems and potentially a lawsuit.

., has there been any lawsuits to challenge or overrule the city/state ordinance?   

Since no lender is willing to do the loan because of the ongoing lawsuit i did not want to buy the condo.

House A and B in same LLC can both be included in lawsuit, House A in LLC1 is protected from lawsuit on House B in LLC2)If you get an LLC and don't do it right then there is no point, but if you actually operate it correctly then it is a good thing.

Then you can put it in LLC to protect you against tenant lawsuits, and the seller's loan is protected because you are personally guaranteeing it.One more tip.

She plans also to do some sort of lawsuit because I did not live up to my promise.   

$5200 is a bargain compared to what a lawsuit might cost plus being forced to keep her.