Most of them only put down $10.00, if that to control the property and most of the time they are out of time for settlement.When a situation like this is presented to me, I want to call the deed  holder to let them know what is going on - if I am going to take an assignment I don't want any surprises.

@Josue Vargas I leave a new shower curtain and rings, felt pads for under the furniture legs, furnace filters and a brand new roll of toilet paper on each holder.

There are a few other considerations, especially if there are any subordinate liens (i.e. a 2nd if this loan is in first position).To be safe, you would normally want to get approval from any subordinate lien holders for your modification.

I knew I would be moving to California sometime; but did not know when visas would be issued etc.

Is that the case because in the above example the HOA was the lien holder, but there was also a secondary concern of the first mortgage?

That the value of the property declines the property owner falls behind on an underwater mtge, the 1st lien holder forecloses leaving nothing for me in the 2nd lien position.

From what you described, it sounds like they have a chance to sell at market value and still come away with a small profit perhaps- although I can’t substantiate your values provided.To do a short sale, the owners would have to contact the lien-holder, aka Bank, and apply for a short sale.  

The recorded liens against the property look to be valued at about 400K.The final judgement of foreclosure is close to 500K.From what I've learned on this site, it’s my understanding that when an IRS lien is put onto a property, that IRS lien becomes the primary lien and the mortgage holder/bank becomes the secondary lien.

If I want to be treated for an ailment through 'natural medicine', I dont care if the doctor is a university educated, degree holder or not.

This is acceptable as long as the holder of the SDIRA is not related to the borrower and otherwise not involved in the project either directly or indirectly (i.e. the holder of the SDIRA does not own a company which is handling part of the renovation).