It's called a Viatical Settlement.

The note holder should have all of the settlement documents.Make sure the liens were filed in proper order and recorded.

try to get a 45 feasibility period where you can get into the property with contractors to give you hard numbers for the rehab. don't forget to figure the cost of a realtor if you use one when you sell plus all your settlement costs..

The beneficiary can hold their interest by way of a LLC or corporation or self-directing 401K for that matter.The 3rd party trustee( very important) would pay you upon settlement per the trust/beneficiary agreements to your % held and any rider/addendum agreement in place..You also protect the property from liens against title and you have a exit strategy since if you for some reason can not sell you can lease it out as needed.You just wish to have your buyer lined up BEFORE you go to setup a trust on your clients property so you can wholesale it as planned.If you can do a A--B deal then do what works..

While I have no idea how the tax in investment income will be collected, I doubt it will be collected from the proceeds of sale at the settlement table.

Of course, one option would be for you to negotiate with the IRS and reach a settlement with them so that the lien gets released and your holding costs go down.

It has to do with the BP Oil Spill Settlement money.

My goal is always to get a settlement in full....but some banks certainly like to leave their options open.

Well guys we have a tenant that got some sort of settlement.

Which would be you AFTER the settlement.Also, you mention transactional funding, which usually means that you need to have a buyer lined up before the settlement takes place.