Title co.s get pay offs, for the purpose of passing title, for liens/mortgages all the time without written authorization from the debtor.

That bid amount is usually total debt or a percentage of the total debt the lender/servicer calculated and unless you pay that amount, that debit in the bank's G/L as a loan simply flips to a credit in the bank's G/L as an REO upon expiration.The loan ceases to exist for all intents and purposes once the proverbial gavel dropped at the foreclosure sale.

For purposes of calculating a Debt to Income ratio for a Fannie or Freddie loan, does the premium paid each month on an over funded Life Insurance policy (IUL) count as debt?  

Paying off debt or saving for a larger down payment will help smooth some bumps in the road toward your mortgage as well.

Do you come under massive debt or does the hard money lender take the property from you?

Is it cheaper to use the contractor's money than your current debt or equity?  

It is illegal for a person to make any false statement regardingincome, assets, debt, or matters of identification, or to willfully overvalue any land or property, in a loanand credit application for the purpose of influencing in any way the action of a financial institution.Some of the applicable Federal criminal statutes which may be charged in connection with MortgageFraud include:18 U.S.C. § 1001 - Statements or entries generally18 U.S.C. § 1010 - HUD and Federal Housing Administration Transactions18 U.S.C. § 1014 - Loan and credit applications generally18 U.S.C. § 1028 - Fraud and related activity in connection with identification documents18 U.S.C. § 1341 - Frauds and swindles by Mail18 U.S.C. § 1342 - Fictitious name or address18 U.S.C. § 1343 - Fraud by wire18 U.S.C. § 1344 - Bank Fraud42 U.S.C. § 408(a) - False Social Security Number

Can anyone shed some light on the new lending regulations surrounding student loan debt or direct me to where I can read the new requirements?

Many of these owners have properties in states that require a judicial foreclosure process, and the judiciary is very pro debtor.  

If I can make it worth your while I will.I've sent one to trustee's sale with a deceased debtor before.