An example might be to pay down debt or to buy another property at today's low prices so that you can get a better return than what you are currently getting.

The logistics of what you're going after are extensive - not impossible - but very extensive and very risky, way beyond what I'm comfortable with.It's not common that a 1st and 2nd position are auctioned on the same day - so you might buy the 2nd today, and then the foreclosure on the 1st is scheduled for auction in 1 week, or 4 weeks, but then gets postponed, or gets sold for 10k less than the debt, or it gets rectified and the homeowner saves it through bankruptcy, or they somehow save it, and now you have to deal with collecting or getting a judgement, and then collecting on the judgement.I don't think I've ever paid more than the original debt at the trustee sale.  

Don’t have you to pledge collateral from your free and clear entity to get non-recourse debt? Or

If you are a big believer in inflation AND you don't plan to sell the property later on then being a net debtor is a great inflation hedge for you too.

Pain is usually associated with having to make multiple payments, or payments they can no longer afford, or too much debt, or heading towards foreclosure or power of sale or bankruptcy.

@Bryan HancockTraditionally, in my businesses, I've tried to maintain 20% of the long-term debt, or 4-6 months payroll, as liquid capital - cash & further credit facilities (LoC).  

A quote: "However, as set out in the KRLLCA, where the member/debtor is the sole member of the LLC at the time of the assignment under the charging order, the assignee/creditor shall have the right to participate in the management of the business and affairs of the LLC as a member."

You were willing to pay for the first and the second mortgages, and the IRS lien could be released from the property and remain with the debtors who owed the IRS in the first place.

Almost everyone will pay their rent over any consumer debts as being homeless is much scarier than a bad credit card debt or a repo'd automobile If they provide a good prior LL report, move them in.

Anyways, depending upon your state laws, you can often seize property from the debtor after receiving a judgement and doing the proper paperwork.