ARV: 290k (She had it appraised 2 years ago may have changed now) Owes: 197k (167 on first mortgage, 30 on second) It is currently set to go to Bank Auction on Tuesday - her attorney has advised her to come to the courthouse and file bankruptcy (which she will withdraw later in the week) to get the proceedings on the house stopped for the moment. 

You can sue but what if they then file bankruptcy?

They have too may other options (sell with Realtor on the MLS, get a new loan, bankruptcy).Good luck Mike!

Filing for bankruptcy 13Loan modification filing a lawsuit I have helped many avoid foreclosure by using the BK and loan mod method simultaneously.

Remember, they can always refer themselves😊Now, make it a goal to call at least 5-10 of these people EVERY day and ask a MAX OF THREE off the list below of who they know that:Just inherited a homeHad a loved one pass awayIs behind on their mortgage or tax paymentsHas a relative that can’t take care of their house anymoreHas a house they’re having trouble sellingIs facing bankruptcyKnows a probate attorneyKnows a bankruptcy attorneyetcWhy only three off the list per contact?

Borrowing money to borrow money is over-leveraging and just one small miscalculation can throw you into foreclosure or bankruptcy and may destroy a relationship.

Turns out my credit is not as bad as I thought I’m a 620 not good but not as bad as I thought the main thing holding it up is a complex collection from years ago of 33k for a travel trailer that my ex let get repossessed without letting me know however I claimed bankruptcy years ago and included that trailer so I don’t know how they were able to get that on my credit now.

If the owner files bankruptcy, goes into foreclosure or dies you'll have a difficult time getting your money back.I agree with @Justin Fox - it's best to have full control over the outcome of the deal.

Remember, they can always refer themselves😊Now, make it a goal to call at least 5-10 of these people EVERY day and ask a MAX OF THREE off the list below of who they know that:Just inherited a homeHad a loved one pass awayIs behind on their mortgage or tax paymentsHas a relative that can’t take care of their house anymoreHas a house they’re having trouble sellingIs facing bankruptcyKnows a probate attorneyKnows a bankruptcy attorneyetcWhy only three off the list per contact?

Most worrisome is the fact that “just doing it” would open up the sponsor to charges of fraud when ding sued; if found guilty of the fraud charges then bankruptcy would not be available to discharge the debt, and unless the sponsor enters a plan to pay the investors, his life is about to be different forever.