The settlement has him quit claim the house to her but it is stalled.

But, they knew it would cost me $40,000 to defend myself, and were hoping to get a $20,000 or more settlement.  

I ask this as if they are solvent t hey may have tax liabilities associated with the potential settlement of the debt.

Brokers are paid off the settlement statement

She was successful negotiating a sizeable settlement with the deadbeat tenant.Going forward, I will insist that all my residential tenants have insurance, with Landlord listed as additional insured on the policy.

Hi @Tchaka Owen -As a point of clarification, the 2nd Lien Holder would be able to offer cash for keys as settlement for their note, and they would then take title to the property. 

The area the house in is notorious for foundation settlement.

@Kiveon Crawford According to settlement report lender will decide both situation.

you could do a lease option, or  a delayed settlement with right of possession you could give the seller a skinning contract subject n an auction, you keep the overage juicemaybe offer to buy the mortgage at a discountyou could do a management agreement with purchase optiona simple "wrap mortgage" would workpossible create an LLC for seller with one asset, buy the LLCif you take property "subject to", make sure you have the deed signed and held in escrowhave a management agreement signed, so the lender can be notified to communicate with you in all matters related to the property and mortgage  - this will help to prevent due on sale clausehave a written "meeting of the minds statement between all parties to the transactionmake full disclosuremake sure your assignment clause is in orderget a title searchvideo property before possessionmake all mortgage payment on timeif there is some equity you could put together a partnership to rise some cashcanvas all other owners on the street for more deals, record the deed and get a new mortgage (but always ask first for a pay-off discount before closinggood luck 

It should have been part of the price/settlement...