Point out the deficiencies of the property and what you do to earn your money transforming the property into something else.

When constructing the building usually there is some kind of construction warranty for maybe a few years that cover some parts and labor.The roof generally has a warranty that transfers to the new owner if certain steps and timelines are followed.If building is passed a few years then the engineer inspection report usually shows any deficiency with the structure, parking lot, etc.

Anything under $400k will have major deficiencies. 

Furthermore, the premise essentially opens up the opportunity for the tenants’s HVAC company to create a deficiency when there might not be one, because the tenant believes there is.

In one of these cases, the first (Wells Fargo) was actually filing for a deficiency judgement post foreclosure sale. 

If there is a valid lease at market rate rents, etc. they tenant now has six months as most of you are aware.Good points above, the best way to help is to probably find them anouther home before they have a foreclosure of give a deed in lieu of foreclosure, which by the way might be thier best option...give them the deed, avoid the foreclosure and any deficiency!

You friend could give the property back if the lender would accept it and that would avoid any deficiency judgment.

If they think they can get money from the owner, they may set the opening bid lower and file a deficiency.

Below are the benefits of using Land Trusts in your real estate business.Benefits of a Land Trust:Liability protectionPrivacyKeep purchase price secretKeep sale price secretKeep change of ownership privateProtection from judgmentsProtection from liensAvoiding deficiency judgmentAvoiding condo and homeowner association judgmentsAvoiding probateAvoiding lawsuitsEase of controlEase of managementEase of negotiationImproved financial statementSaving on title insuranceEase of transferability of interestsSimplification of making giftsLimiting liabilityAvoiding partitionEase of foreclosureSafer lease/optionsAvoiding personal problems of beneficiariesAvoiding real estate brokerage lawsAvoiding seasoning problemsLoaning moneyBuying foreclosuresBuying distressed propertiesEquity strippingHolding judges property

They are deficient in all that lends character.