Because the lien holder has not chosen to foreclose on the lien yet.When you bought this is when this should have been uncovered.

Sounds like this is not the first time they are having a conflict with a landlord and I am curious if proper due diligence would have uncovered a problem ahead of time.

Liquidity is everything in this game, so finding a strategy or blend of strategies that support that is usually the best way to go.Hope that offers some insight for you.Cheers!

Hopefully some proper investigating will uncover the truth.Please keep us apprised of your research results. 

I know starting an LLC is a good idea but the 8-10 months of rental income for the newly started LLC may not be enough to get a mortgage loan through the LLC alone without the bank looking at my personal finances, which will then uncover the 1,700 a month mortgage and not enough verifiable income to cover both.

But when we did...we uncovered a gold mine.

If the borrower recently used credit to finance vehicles, trips, toys and the like as they will be uncovered by the lender when the lender runs a credit report on the borrower.Copies of Bank Statements: If the seller’s bank statements reflect unaccountable deposits, large cash withdrawals, or an unusual number of checks, it's probably a good idea to explain each of those line items to the lender.

I'm on a tight budget, what direct mail lists typically generate the most response and uncover the most motivated sellers?

Hopefully that uncovers any issues.

Good to meet you..When using Postcards a combination of typed text and handwritten text tend to be the best for uncovering motivation.