The extra 10% would be split up as 6% max as seller concessions towards closing costs, then the remaining 4% would come off the principal loan amount. 

For example, any foreclosure of a home equity loan must be through judicial proceedings (court), and cannot proceed as a private foreclosure.All home equity loans are non-recourse loans, meaning that if the lender does not recover the full amount owed by the borrower through the foreclosure process, the borrower has no personal liability for the loan and cannot be sued for any remaining balance owed.Back to topConsiderations When Taking Out a Home Equity LoanHome equity loans can be a useful tool to allow a homeowner to obtain funds that are otherwise locked up in their home.

Hearing stories from others who were in similar situations was also a big motivator for me.

My remaining properties still cash flow and I have nice appreciation as well.So I guess Im in the lucky 50% that @Jay Hinrichs says did well with this asset class.

The motivation of a government agency for example can be based on a public servants wanting of revenge, desire for increased visibility or even political ambition.  

Would it make sense if the co-owner paid rent and then we split the difference on anything outstanding that doesn't cover the monthly mortgage (mortgage is 2k/month. he pays rent of 1k and then we split the remaining 1k 50/50)?

For tax purposes, the IRS sees you and your LLC as the same entity, so transferring the title to your personal name typically wouldn’t affect the 1031 exchange deferral.However, to maintain the tax benefits associated with the 1031 exchange, it’s important to ensure that the property remains a rental and continues to be used for business purposes.

Difficulty in Financing: Selling a property purchased under a land contract can be more difficult, as potential buyers may be hesitant to take on the remaining payments.Benefits for Sellers: Deferred Capital Gains Tax: Sellers may be able to defer capital gains taxes on the sale of the property if certain conditions are met.

Does anyone know if they release the house after they finish selling or building the remaining homes? 

Is they are appreciating in value or remaining steady?