If you declare bankruptcy, for instance, it puts your foreclosure on hold.  

I currently have 2 permits submitted in Escondido, one owner-builder and the other using a licensed contractor (patio roof).I grabbed my paperwork for the one I declare as owner-builder and it was as I indicated with nothing certifying that the property is owner occupied. 

(Again a good reason to do this when you have nothing for them to sue you over after you declare bankruptcy.)Ps.

Any asset or liability of the debtor has to be declared and then the trustee follows the money.

That helps for book keeping and Depending on what kind of LLC you have (single member, multi-member, etc) and how you use your LLC for tax declarations, it can lessen the chances of you being audited by the IRS.My rule of thumb is that I don't want to keep enough equity in my LLC to make me a target for a lawsuit.

You have to declare the property you are buying and you have to use a 1031 intermediary before the sale.It sound slike none of those things occured.

Some of my friends that own homes in CA just said their insurance just declared all of CA a fire zone and doubled their insurance.

I would also get a statement from the borrower declaring that they will not move into the property at any point, or allow a direct family member to move in.

You would assume the insurance company for the company that declared it was safe would be paying when the company making the guarantee was sued.

And Albert Einstein declares Compounded Interest as the 8th "wonder of the world" with the detail of those harnessing and reaping from such, and everyone else who is SUFFERING/paying such......