Had we defaulted they would have had a much better property than when we first took possesion however I do know that this is not always the case.

If Seller no shows, have your agent give them a call and communicate the consequences of defaulting.

She can earn a little income by the interest she charges you, and any value you add to the home is hers really if you default.

The only worth collateral has to a bank is how easily it can be liquidated in the event you default.

So if you’re past the inspection or due diligence contingency period, check with your agent or attorney before deciding as that may not be a reason to exit without being in default.

That's not saying they won't default you but they would probably not prevail in the face of litigation. 

We are wondering, in the event of default, how we are going to regain the property.

Please keep in mind for tax purposes LLC are passthrough by default.

Sent out the amended documents in March, got proofs of service in April, and got on the court docket for late June.In June, I recieved a default judgment against the 3 defendants who didn't give a hoot about the property and never responded. 

They can hold the lot as collateral and they would get to keep the deposit too if the owner defaults.