Further understand every state has different rules and interpretations, do's and don'ts and the rules often change so you are best to consult with a real estate attorney licensed in the state of interest.There are only 2 ways to take control of a property subject to the existing lien: overtly or covertly; everything else is details.Overtly is to write a letter to the bank telling them you have taken title to the property and put the named owner in the public records (deed) in any manner you want. 

Hope thsi helps:SECURITY DEPOSIT BULLETINMay 2010This bulletin outlines the laws pertaining to security deposits for residential rental properties inNew Jersey, pursuant to the Security Deposit Law, as set forth in N.J.S.A. 46:8-19 through 26and as may be interpreted by a court of law.

I need to read the text to be sure, but I have been interpreting this a per person such that a married couple could have 2. 

It takes work to maintain that script, though, it's not something a non-programmer could maintain; plus, I have to already have interpreted the meaning of each document, and named the files in a unique way that includes the date, so that the Perl script files it away in the right place.If I could automate the web-site interactivity part, and connect that to a calendar-based trigger of some sort (on the last day of the month, login to THESE sites and download all the files), that would go a long way to freeing up my time.As a real estate investor, I want the freedom to have 10X the properties I have today.

I interpreted that as meaning they didn't want to sell "right now" so I put them on repeat-mail ever 180 days.As for taking D4D home and continuing to market to these owners, I actually use a system I built that manages it all from my phone.

Sorry to be so direct but that's how I interpret your situation. 

Ok, so that is kind of vague and open to interpretation, right?  

Its also very open to interpretation by the local judges and I believe that if they see that that the person can pay but isn't they can enforce? 

A tax attorney won't necessarily have any better adviceThe guidance and interpretations is going to come from tax cases, regs and updates the IRS has released.

That would need more investigation if I were truly considering this property - this exercise was mostly learning how to plug in the numbers and interpret the results.Yes, I'm projecting the property to be STR.