(Not legal advice or noting you should do this, just what I would do" and then ask "happy to let this play out in court and go to discovery - love to see how you financially handled this... and oh by the way, please refrain from destroying any documents, emails etc. as it relates to this deal for discovery purposes..."

Courts  of equity or redemption rights, homestead exemptions or recourse, are they teach anything about lender and note holder liability ?

I am now looking to sell (NOT list) one of the 3-fam in Brooklyn (Windsor Terrace).  

You can also take them to small claims court but you cannot get water from a stone.

I am filing a suit in Orange County Superior Court and along with reporting to following government entity.

Real estate, by default, is passive and the primary way to avoid the passive loss rules is to qualify as a real estate professional.Full-time employees and non-real estate business owners cannot qualify as a real estate professional (aka REPS status) because one of the tests is to spend more time in real estate than anything else (and it’s unlikely that you can convince the IRS or Tax Court that you spent more time in RE than your day job).

You have to know how to screen tenants well, know the landlord tenant code thoroughly, know how to send proper notices, when you can charge late fees, what to do if a tenant doesn't pay etc.I can't tell you how many owners have come to us over the years who thought they could manage on their own and got all the way to court, only to find they didn't follow proper protocol with notices or the late letter etc and have the case thrown out and have to start again.Also, are you local to do inspections? 

Even a policeman told me this but I found many recent court cases where owners are forced to demolish the unregistered terrace.

So if someone tells you, it does not matter about liens behind you - it does.There’s one more ; the borrower has increased debt service and when it either turns negative or leaves nothing “in their pocket” they may lose interest in the property, decide to stop paying all mortgages, and put whatever income they can into their pocket until they lose the property to foreclosure or one of the lenders obtains a court order prohibiting such.   

This leaves a smaller balance disputed but if you do not pay them anything until its resolved, it could lead to issues if it goes to court.3.