Since REO's have potential unknown liability issues, is it more likely a "you get what you pay for" situation.A home may have a price of $250k, but have an estimated value of $300k (based on size, age, neigborhood, etc), but that means the bank estimates there is $50k worth of liability (whether that is unknown debt or repairs).

I would also think that the the lender could issue a statement that removes her future liability from the debt or deficiency in the future.

Attorney said it would mainly protect from Debt or general liability, not much from any issues which the buyer would sue after closing such as non-disclosure or home defects.

Forget paying the entire debt or making payments if YOU intend to buy the equity in the property and turn lemons into lemonade (for you).

You've got Debtor Attorney's in FL telling borrowers to pay them $500 per month and they'll keep filing silly "roadblocks" to use the backlog to their advantage.

Debt or Equity.

Collection agencies have no power of enforcement and must stop contacting the debtor if the debtor tells them to.

And if you don't like taking on debt or exceeding this percentage do you end up missing out on deals?

Again I'm just not crazy about debt or over leveraging.

Sometimes a debtor will buy back some assets from the trustee if they can afford it.