We buy at a discount and pledge our legal right to collect the debt (a collateral assignment agreement) as the collateral for the private capital loan we take out, which is backed by the value of the real estate securing the 1st loan.  

Then you state how that will be collected.

I have proof of all of it and we are ready to act swiftly.

It's not fool-proof, but I think odds of earning 7.5% using a barbell strategy in the average year on your money is 97% likely with very very little effort. 

We have a judgement but since they closed their offices LLC that entered into the contract we have no way to collect.  

And typically long term rentals don't make it easy to include property management fees into the numbers and have them still work well.I would consider looking into STR type areas where you can avoid the risk of property damages (str and pm insurance covers almost everything that they might damage) and evictions/collections.   

@Rickie LattimoreGive up 95% of the equity - oversee the properties and collect a management fee.

They have rules and best practices about how we put these deals together which has collectively saved us from much of the pain being experienced right now in the multifamily space. 

I don't even think its worth a sub-toSounds like you spoke to collections (who will tell you anything to get money) and not loss mitigation, as paying back due balances are NEVER part of a short sale.

The state doesn’t have rent control laws, but landlords are prohibited from collecting more than one month’s rent for security deposits.