The lawsuit cannot usually reach the property value that is included in the loan, so this makes the prospect of taking the asset much less attractive to seize.Additionally, as a side note, if you have multiple properties with high equity, placing them in a single LLC is usually not advised, as a judgement on a single property can then reach the other properties if they are all owned in the same entity.

I would explain how a judgement against them adds to the amount with court costs and then interest on an unpaid judgement and that collections could involve wage garnishment etc.

You may be able to go after the seller and at least get a judgement, even if you never collect on it.Also, you should have had an inspection prior to closing.

You may find it hard to collect but you can get a judgement against them which will warn other landlords.You can garnish their wages and tax refunds once you have a court judgement.

I am in Florida and have never heard of needing a money judgement.

They clear the liens, remove the occupants, and put it up for sale as an REO on the MLS with a listing agent.If a mortgage, the foreclosure process has to go to court to receive a foreclosure judgement.

@Lucas Thomas  Most of mine stay multiple years without the 2 year lease if things go south it isn't with someone who is likely to be a good judgement candidate. 

Clearly you're the overly sensitive one here when you're ranting and raving about how bad HELOCs are and making poor judgements and assumptions.

I prefer states that are landlord friendly - for example in Virginia you can evict for non-payment and usually get a judgement and possession in a few months.

basically 1k up front stay in your home one year.. in states with no deficiency judgement for purchase money the only thing the owner losing the house risked was their fico.