Banks with a junior lien have to bid on the foreclosure by the senior lien holder, and those junior lien holder banks are third parties to the senior lien holder's foreclosure action.

WOW, Let me count the possible and probably violations so far in this thread:Failure to comply with the SAFE Act (having 4 more deals will likely take you there)Preditory lending (30 month plan)Filing false liens (not the note holder)Facilitating or selling residential properties without a license ..RE or Dealer, representing an owner.Tax fraud, not counting principal receivedPracticing law without a license in making a contract to represent another party (you can when you have an interest in the property but you'd don't if you are acting as a broker)And LOL, providing a reciept for amounts paid out of a financed transaction:Money launderingIf considered RE, HUD violations for disclosuresTax fraud again, if the receipt is used by another for tax purposesI'm sure there's more.You guys better burn Lonnie's book!

In the past years there have been lots of subject to transactions, so the original borrower is on the loan, and it is their loan that is going to be foreclosed on, and their credit that is going to take the hit.I have often used these people to put pressure on the current deed holder, so confirm who actually owns the property now by checking the tax records, the grantor-grantee index.

Any advice would be truly appreciated.Many of your questions will be answered in the links provided above by to answer this specific question . . .Many use the 50% rule which assumes that 50% of your gross rental income will go to expenses (operating, vacancy, and capital), the balance 50% left over each month is what you have left for debt service and cash flow.The other rule many buy and holders use is the $100 per door or more of monthly cash flow.

You can do stock distributions in a s-corp and be minor holder, or chair, have 1 partner, 2,3, trusts, on and on and on.

I'm aware of the overall benefits of an LLC- easy of operation- basis for depreciation- no double taxationHowever, double taxation only occurs in a c-corp when distributions are paid to share holders.

I was talking to one of the principals of the firm and he said he is worried now that there are new laws on the books that require the mortgage holder to perform some maintenance on vacant properties.

If I do this again, no doubt I'll be wiser for the experience.My plan now is to rent this one property out for 12 months, then look at the numbers closely before I make any additional investments.One other note: It is a really great feeling to own the deed to a property outright without a lien holder!

I understand that deals can be set up such that equity holders don't have voting rights.

Can a 2nd or 3rd mortgage holder force foreclosure if they have no equity?