Have owner file for bankruptcy 2.

I do not think either borrower truly understands the default risk let alone bankruptcy risk and legal risks.  

ABC declares bankruptcy in the face of multiple civil cases.https://www.thebaltimorebanner...

He says you need a real "junk yard dog" of a property manager to pull it off; many out of area investors have ended in bankruptcy court.  

If you, the wheeler dealer, pro RE investor type convinces a seller to enter into a loan agreement you devised, make no mistake, your tail is flapping in the wind too.People can agree to all sorts of things, they may or may not be legal, if the parties reach the conclusion desired, no muss or fuss, everyone is happy.....okay.However, individuals unlike corporate entities suffer from what is called "life events" these are events that happen to individuals, they die, the go into a hospital or nursing home, they get divorced, they take bankruptcy, they get sued, they go to prison or they might even talk to someone like their attorney about something else and mention an arrangement.These life events usually cause other eyes to begin looking at financial dealings, any life event can cause a financial matter.

The only way to avoid paying a judgement is to file bankruptcy or physically hide.

He has recently been through a bankruptcy and has horrible credit so he cannot get a loan to cover the lien.The property is worth around $200k free and clear and the total lien is approximately $5,000.

Also, where are you finding mortgage lates and bankruptcies.

So I don't know if I got anything, maybe I'm assuming too much, LOLIf I find anything that I have said that is reprinted from this site or any other for commercial purposes just expect alot of problems, like bankruptcy.

It gets complicated with both family and a recently-concluded bankruptcy in the mix.