They are weighing the cost of fighting the "quiet title" issue, what they are going to get at auction, the time frame of getting the property to a sale date and the cost of carrying the HOA fees, the property taxes and the homeowners insurance during that time frame.

@Michael BaumIn addition, you need to have reserves for the mortgage and unforseen repairs.6 months of mortgage payments would be good to carry you and fund emergency repairs.

They do typically carry a slightly higher interest rate than conventional and often have a prepayment penalty.

It’s important the company has progressional liability and commercial general liability coverage and any sub contract relationship the PM relied upon carries adequate insurance coverage.

You have many possibilities:Research Contract for Deed & Seller Carry back financing.If they were able to qualify with a non QM lender for the 1st Mortgage  you could possibly have a 2nd position loan with an equity participation component. 

@Carrie Roeger That’s awesome!

I'm not an expert at this but something is off to me has anybody been told this as well.Thank you,Could be that the lender wants to avoid IRS/Treasury disclosure trouble for transactions over $10,000 (part of the know your customer rule).So as another poster said; when you say “cash” do you mean physical notes that we all carry around in our wallets? 

In Florida HOA’s are required to carry policies with replacement cost, Actual value is not allowed by law.

Landfills and those enormous overhead electrical wire distribution towers both carry risks in many people's minds.

I would also carry the loan and establishing a penalty for early payoff (how much penalty?)