@Joe Villeneuve  Are you referring to needing two members for asset protection against personal debt or some other reason?

What's wonderful about the game is a real life situation like yours will arrive in the game- Pay off debt or wait for another deal?  

I am looking at a sub2 deal with the following details:1) Motivated seller that understands sub2 deals2) 1st mortgage with rate of 2.75% 30 year ARM (loan is current)3) 2nd mortgage (originally a HELOC) has been in default for 5 years & was already charged off (a charge off means the lender is no longer in collection mode, wrote off the debt, but does NOT equate to the debt or lien against the property being canceled as some people think).

They still haven't got a "plan" of how to do it.Examples of Goals, not plans:*  Buying (fill in your #) house per year, or this year* Acquiring (fill in your #) rentals per year, or this year* Getting out of debt by (fill in your year/month/age)* Quitting my job by (fill in your year/month/age)* Paying for (fill in a debt or other cost)* Buying enough rentals to pay for all of my monthly expenses, so I can retire* Being debt free* Stating a minimum profit/cash flow per property* Stating a timeframe for paying off a property* Stating criteria for holding, flipping...these are rules to follow...not plans* Defining a set of "do's & don'ts"...these are guidelines...not plans.How do you know the difference?  

Per last HOA report there is no litigation, debt or trouble.

The superior lien holders will not negotiate, you are not the debtor and have no authority on the note.

Now if you're deciding between paying off $36k in debt or spending the $36k on a trip to Vegas, financially you're better off paying off the debt.

From my experience it is easy to get a judgement.It is very hard and time consuming to collect.Therefore especially on any tenant that is questionable you have to get a large security deposit to compensate.If you don't you will be sorry later.For judgements you can try the bill collector route but it almost never works,you can try an attorney but that doesn't work,you can do it yourself,or hire a judgement collector company.You have to make sure the past tenant is not "judgement proof" and will just file bankruptcy or has nothing to lose to begin with.After years you might collect some of the money.The best thing to do is either hire it off to a "judgement collection company" where they pay for court costs and collection split what they collect 50/50 with you which can take years OR you can sell the judgement to them for maybe 15 to 20 cents on the dollar and they pay you today.The judgement has to be for a certain size and they will research the debtor to see if they are judgement proof before offering the cash upfront.

the SBA discounted the lien significantly, but insisted that the balance remain as an obligation of the debtor personally.

However, if the debtor tells the collection agency NOT to call again, they can't.