There is no taxable event or distribution involved here.The 401k, (or IRA as the case may be) is not being distributed with cash proceeds to the IRA account holder.  

I am sure there is more to the story.Probably a lot more to that story as I don't know how a rent payment service would be able to just debit an account because they had the account numbers, it's typically a verification by the account holder giving the inquiry permission.

The binder holder then has 10 days to sign the lease (and that includes paying a full deposit) or the binder holder will forfeit the payment (the binder consideration) to hold the property.

If lien-holders are next in line to be sued because of what happens with or on the property their loan is secured by, this country is going to implode quickly.

Does the LLC that places the lien need to have some other business purpose besides being a lien holder?

Dave, in this situation, does a right of redemption get created because the second lien holder now has an interest in title?

I have several investors considering the deal and the feedback is that they are happy with the returns offered but being a minority stake holder is too risky.

Here in CO, junior lien holders do have redemption rights.

Controllers use "flight strips" to track aircraft, back then they were thin paper strips that slid into a holder and the holder was laid on a rack that was tilted back so that if you took the bottom holder off the rack, (like that plane landed) the rest would slide down and you'd then work the next in line.

I have spoken to one different provider here in CO that said they always go after the account holder for delinquent accounts - bill follows the individual, not the property.