Even the most bogus of claims is costly; while the claimant has the burden to prove discrimination, the landlord/owner has to respond and refute the evidence, which the court has ruled can be challenged again by the claimant.  

They work with the family or heirs to essentially liquidate all these assets and then the courts decide who gets what or how much based on the number of claimants.

When they cause the injury or property damage, the claimant is not searching for reasons that it is your fault (because you are the only one with coverage).  

There's likely a legal issue with the second mtg not being a legit mtg, but to the crux of the matter....I have noticed a couple of times where after a first mtg files foreclosure, a second mtg holder will file a "cross claim"  and become the "cross claimant" in the foreclosure case (I believe that is what it is called) and actually "takes over" the court action.  

You can ask the court deduct a share of all expenses reasonably necessary to preserve the property -from all other claimants. 

Even if the property is in an LLC or corportation, there is always the possibility that the claimant could pierce the veil of the LLC/corp.   

Most homeowners will hire an attorney or 3rd party to recoup the fee's and they will take a % of the surplus funds.Many homeowners don't know that this is an option and I'm sure claimants have left money on the wayside in the past.

If he has no insurance, you become the deeper pockets for anyone to sue if they are injured on the property (even if he was responsible, the claimants attorney will be looking for reasons it was your fault. 

Primarily the reason is the 2 year period that claimants can contest the sale if they can prove they were not notified and given the opportunity to pay the back taxes.

Hence, Salas argued that Commonwealth was obligated to cover him for his loss under this title “defect.”Commonwealth, however, took refuge in Standard Exclusion 3(a), which excludes from coverage “Defects, liens, encumbrances, adverse claims or other matters created, suffered, assumed or agreed to by the insured claimant.”