Also, if your loan was conventional; Fannie Mae recognizes the legitimacy of a QC between the mortgage holders and the LLC so long as the LLC is controlled by the borrowers; If the property was owned prior to closing by a limited liability corporation (LLC) that is majority-owned or controlled by the borrower(s), the time it was held by the LLC may be counted towards meeting the borrower’s six-month ownership requirement.

Debt is more limited in the upside, but its payments gets first priority from cash flow and is usually collateralized in some fashion (i.e. the debt holder gets something if the borrower can't pay, like ownership of the property itself).Your situation seems different in a few ways.

How can I find who the mortgage holder(s) is?

@Charles Holder by no means am I a professional but from what I’ve gathered on here and word of mouth is..Va offers a “rehab” loan similar to the va loan.

The opening bid at auction appears to be about 13K more than the mortgage holder is owed, so maybe they have a deal with him to help them get paid??

The mortgage holder has agreed to short sale or even work out payments to stay in the home, however the homeowner still wants to move on.Any thoughts?

LolIt's a "place holder" until they find out the actual amount. 

My name is Joe Budelis and I'm a long time holder of residential rental properties.

Why don't you ask the 1st lien holder if the note is current?

If you want to buy from banks, expect to be required to buy pools of notes.If you're trying to buying a soecific note on a particular property, about the only opportunity that I've seen is from private party note holders.