Tell them that this is a constant problem and you are at your wits end as to what to do. 

It is my belief that the majority (possibly all) of the 52 accused cheaters must have lost their permits because in April we received our STR permit on the unit that had not received the permit.  

First lien does not get affected they can only get what they are owed.So while I can see how you thought this was cool.. it certainly is not and its highly illegal.. and if I was there and I was bidding and witnessed this activity I would file a complaint with the DA and FBI

@William Hochstedler  were I saw this model fail miserably for LA based investors was even though they are full doc.. the cash reserves that are there at the beginning.. investors get this irrational sense of security that their rents are going to come in like clock work that the homes are going to stay rented that their home will be taken care of like they would.. and the reserves end up getting spent on other things in their lives.. thereby wildling down their reserves.YOu have a bad run... you need 5k to fix up and re rent... house is vacant for 3 month during the process... and if you don't have the funds your PM is noting going to front it for you.. and down the tube you go. that's what I witnessed.. these were not speculators  these were people that thought their 100 to 200 a month positive were a given and could never change.. and they were woefully under capitalized. 

The land trustee then becomes a second set of eyes and ears (and a more credible witness when saying a deed was forged), preventing/reducing title theft. 

Anecdotally, I witness much frustration in the mortgage industry.

This gives you an objective third party as a witness and it ensures the charges stand up in court.What you experienced is very common in real estate investing.

Come to the conversation more as a brainstorming session rather than an accusation. 

The tenant tried everything he could to delay the eviction from trying to make the Sheriff feel sorry for him, to accusing one of my move-out guys of being a criminal, to offering to pay me "extra" if I took him down to the SS office to get his money.

Dear fellow members, I am confronted with a weird accusation that I haven’t seen in 15 years of managing student rentals.