You're looking for obvious deficiencies and damage.

Lender may foreclose and sell for 700k, then go after deficiency of 100K.                     ORSue to collect the 800 due on the note and let borrower KEEP the property.

After it closes, the remaining value at sale price is wiped off the balance sheet and the deficiency (loss) moved to the income statement.

Or, if the bank takes it back, maybe you can buy it from the bank.The lender may be wanting to go after a deficiency judgment.

Here is what the notice says:MORTGAGEE'S NOTICE OF DEFAULT AND INTENTION TO SELLYOU MAY LOSE YOUR PROPERTY IF YOU DO NOT TAKE IMMEDIATE ACTION.IF YOUR PROPERTY IS SOLD, YOU WILL REMAIN LIABLE FOR ANY DEFICIENCY WHICH THEN EXISTS AND AN ACTION FOR COLLECTION MAY BE BROUGHT AGAINST YOU.THIS IS AN ATTEMPT TO COLLECT A DEBT AND ANY INFORMATION OBTAINED WILL BE USED FOR SUCH PURPOSE.How do I find out about the notice process in Arkansas?

We use a 10% cap for each deal and guaranty a 10% net return for 18 months which covers any repairs or vacancy that might drop the return...if it happens, we reach back into our pockets and repay the JV partner the deficiency to bring the property back to 10% net.

Unfortunately, agents are not general contractors and cannot identify serious deficiencies.

First thing you need to do is identify the true and Current market value and adjust according to the subject property deficiencies you mentioned.

Further, HOA liens in NC are commissoner sales not trustee sales and deficiency judgement remedies are not applicable.

But, if the property is not really marketable without SF, you'll likely be in the same boat unless you fix deficiences...if you can.