The first alone in your example is at a 94% LTV Loan To Value ($375,000 1st divided by $400,000 value) and the wrap mortgage is underwater at 101% LTV ($405,000 divided by $400,000 value). 

I'd start by giving all residents the required notice (usually 24 hours) and go inspect the units as quickly as you can. 

By creating a process, you can prevent these issues from taking place and save yourself a lot of time, trouble, and money.

Here is the Collin Hays method of buying the property at what you want to pay:Don’t ask the seller what their best offer is.

I negotiated by being honest and transparent about every step in the process.

After staging, it was sold to a retail buyer for a strong profit, demonstrating the potential for significant returns by buying from motivated sellers, renovating strategically, and selling at retail.

I am passionate about Tiny Homes, I started just by helping more people with creative floorplans by self teaching myself CAD design so I could help more families.

Purchase price: $350,000 Cash invested: $10,000 House hacking my first home by converting the master bed into an independent studio that we rent on Airbnb What made you interested in investing in this type of deal?

@Marie Thomas: Yes, it's like selling pizza by the slice, so both renter & investor get more for less. 

During the 2008 financial crisis, both entities were placed under conservatorship by the Federal Housing Finance Agency (FHFA) to stabilize the housing market.