The reason is that as a disqualified party to the IRA, you may not pledge a personal guarantee on any debt instrument.  

I am guessing the people you're talking about borrowed on an ARM or a balloon loan, both of which I consider to be tricky debt instruments to use and generally I wouldn't use something like that unless I have checked and verified my exit strategy a hundred times.For me the biggest concern in a crash was vacancy.

He assured me that SC has a state specific exemption allowing for seller held financing without the mandatory use of an RMLO for up to 5 properties per calendar year.Taken directly from the SC code of laws: "Exempt person" means:"a natural person who sells residential real estate and who lends or services, in one calendar year, no more than five purchase money notes secured by mortgages, deeds of trust, or other security instruments on the real estate sold as security for the purchase money obligation."

From what I understand an originating mortgage co. records a mortgage for 150% of value and the FHA records a similar instrument stated as a Secondary Mortgage in the same amount, insuring the first, does anyone have experience with buying theses at Sheriff Sale?

Follow through to see sales analysis, then click instrument to see the deed.

., a trust instrument)?

If you are investing with an investor use an Attorney who is instrumental in writing the operation agreement.  

Not only are you looking for the history on the house in question, but you will also have to look at other mortgages held under the persons name to see if the house shows up in those instruments a collateral. 

I know that you will find this site to be instrumental in your success as a real estate investor. 

A security instrument such as a mortgage or deed of trust would be used and recorded if the lender want's collateral.