I believe what you're saying you would do is to create another LLC soley for the purpose of using it to get the contract and then you sell the llc which is the current holder of the contract.

It is a better coverage for the policy holder than "Actual Cash Value" (ACV).

Now, you own the property but the former owner is liable for the mortgage payments to the holder of the Note. 

.#13 Install vanities, fixtures, holders, toilet, shelving.#14 Realize you did not install a bath fan when you should have.#15 Wonder if it was worth it.

In a reverse exchange the QI sets up an entity that will take title to those three properties using a single purpose LLC called the Exchange Accommodating Title Holder. 

The lender will get a copy of this policy and will see the new policy holder being different than the borrower they have on the loan and you can get notices of breach of contract at that point? 

I’ve never heard of doing such a thing but I assume if it could be written into the deal then you could buy the LLC from the current holder of the LLC.

We rent to about 400 Section 8 voucher holders, we screen residents and ask for rental references, most of the time it works out just fine.  

I still wouldn't mind hitting 50 units this year as per my other post - http://biggerpockets.com/forums/522/topics/160698-... However even if I don't, I'd still consider myself a success.Mid 2013 I was able to source ...

However, in many cases, the note holder (usually not the bank) has final say in such things and have already informed the lender through an existing loan servicing agreement that they should allow the default to be cured.