Even if they did, you have to find the tenant/debtor, serve them and proceed with whatever the legal process is in your state to collect the debt. 

Do you want to avoid debt or do you want to scale?

As for the other benefits, if you do not qualify for agency debt or have never gotten agency debt before (and therefore don't qualify), then bringing on a loan guarantor will help you get your Fannie/Freddie card, which makes subsequent loans easier to qualify for.

LOLI share sometimes when someone is struggling with debt or can't save. 

There may be examples of someone taking out very large debt, say one million dollars or more, and that debt may not enslave them to anyone, however there may be an example of another individual taking out a loan of five thousand dollars and this loan may all but enslave the borrow to the debtor in many or all aspects of their life.

Unfortunately, Texas is a very debtor friendly state (we have strong asset protection laws even built into our state constitution).

Short of that you may be able to get your attorneys assistance to renegotiate your note and get a mortgage recorded on one of the properties instead, that would tie it directly to a specific property and put you in better position to force repayment via foreclosure.If you do end up in court and you win you'd most likely get a judgement which your attorney can then have recorded on the title of any (or maybe all, depends on your state law) of the debtors properties. 

If you pay down debt, or increase income you may be better able to qualify.

I am new here today everyone. I have flipped 25 or more units until I saved and now have many off market buy and hold rentals, four 4 plexes, and 50/50 ownership with my son @Jason Powell on a 5 plex and 8 plex. I als...

I am new here today everyone. I have flipped 25 or more units until I saved and now have many off market buy and hold rentals, four 4 plexes, and 50/50 ownership with my son @Jason Powell on a 5 plex and 8 plex. I als...