@Kristina InglisI have heard the reason lenders cannot do conventional loans to an LLC even with a personal guaranty is because the loans cannot be packaged and sold on the secondary market or sold to Fannie/Freddie if the debtor is an LLC.

When a syndication or fund wants to buy an apartment building, for, let's say $10M, they have two basic options to finance it: - Debt- Or EquityEquity is expensive, as investors demand high returns.

I would try finding local people of money who want to lend you money at a reasonable interest rate, then buy the property, fix it up and sell and repay the debt. Or

There is no subordinate debt or liens on the property and there is equity.

Further, any bankruptcy filing automatically stays foreclosure, the mere filing will stay the foreclosure the usual 90 days the debtor has to come up with a preliminary plan, a 60 day extension after that would usually be granted by the court.  

., Just like inflation, it would be good for debtors but bad for savors.

JUST BECAUSE A CREDIT REPORT DOES NOT LIST A DEBT OR A CONTINGENT LIABILITY THAT IS NOT A JUSTIFICATION TO MISLEAD OR LIE TO A LENDER ON THE APPLICATION OR IN THE APPLICATION INTERVIEW.

@maurice grantWhen a home is sold at a sheriff s Sale the HUD partial claim will be paid off from the proceeds of the sale so the claim will no longer encumber the property.If the home is sold through a short sale, the HUD partial claim will be paid out of the sale proceeds.In regards to your  3rd question, filing for bankruptcy will have no impact on the HUD partial claim.What filing bankruptcy will do is grant an automatic stay to prevent creditors from collecting a debt from the debtor.

Any reduction in debt or cash received may be treated as taxable boot, resulting in potential tax liabilities.

@Kyle Church are your private investors providing non-recourse debt or are they providing equity?