As I look through my exam books right now, here are just a few of the topics covered in depth: Conditions of purchase Buyer alternatives-purchase/legal legal aspects/securities law LLC, S;yndication, partnerships, joint ventures, TIC;s/Tenant in common ownership-security/non security Investor participation, breach of contract, buyer's liabilities, Equity purchase transactions, Lease Purchase/Lease Option contract-legal burden of proof, Boundary disputes, easements, enchroachments, Promissory notes, due-on-sale regulations, Converting nonrecourse paper into recourse paper, deficiency in recourse loans, modification of notes, errors in payoff demands, AITD/Wrap mortgages, short payoffs on recourse/nonrecourse.

If the borrow doesn't "cure the deficiency" or sell the property, the property goes to a trustee sale and is sold to the highest bidder.

The real estate agent will pick a listing price based on a couple things:- How much they believe the BPO will come in for- How much they believe it will take to get offer(s)- How much the sellers want out of the sale (obviously, they don't take away anything, but if there is a deficiency judgment, a higher sales price may save them money)I've seen plenty of cases where the list price was much higher than the BPO indicated value and I've seen plenty of cases where the list price was well below the BPO indicated value (in which case, a full price offer would not be accepted by the bank).Don't assume list price has anything to do with value...this is true regardless of whether you're talking short sales or any other type of sale.

FL with city liens is that the buyer buys the property, corrects the deficiency, then negotiates and pays perhaps 10 cents on the dollar.

He could be in title and not one the note, but that's not the usual case.You also need to ensure there will be no deficiency.

Sell the property, if there is a deficiency seek a judgment, rather easy after foreclosure.

And with all these deficiencies the show a cash flow of something like $500/month that in reality likely produces negligible cash flow when including cap expense and real maintenance numbers (I actually would never purchase a unit if I was projecting only $500/month cash flow a couple years after purchase). 

Assuming the note was an installment sale, there will be little if any right to seek any indemnification or deficiency against the borrower, but if some idiot made a cash advance loan on such collateral that could be possible.

In fact, most do not.This article went after short sale investors and was based on inaccurate, opinionated, and even fabrictaed information.As a short sale investor who does it right, I don't "convince the lender that the price I offer is the market value", what I do is pull "real comps" and deliver to the BPO agent and point out any deficiencies with the subject property.

Saying that if you get the property back and sell it with seller financing you may avoid the tax issues of the gain, but that is to your discount and there are no deficiency judgments with equity based loans as they are viewed as installment sales, not cash advances.....but since notes are usually purchased at a discount it's unlikely you'd have a deficiency, unless you had an uninsured loss.