@Albert Bui Yes exactly, this client walked away from a house in 2008, BK in 2009, foreclosure filed 2009, dismissed for no reason (lack of prosecution 2012), no active foreclosure , no filing on the horizon, 8 years later!

If you have a solid reasoning behind why you planned to owner-occupy the property and had to move out before the 9 - 12 month period is up, then I don't know how you would ever get prosecuted.  

I won't go into details, but it was so bad that many of them lost their life savings.Eventually both Jake and Joe were prosecuted and when to jail for a duration of time.What is the lesson here?

You have proof, are you prosecuting her to recover the stolen funds?

A lawsuit is different, if you get sued, the prosecution "can" only go after whats being held in that particular LLC as assets for payment.

That said, if you find a good enough property that you can build in enough equity immediately, you can refinance out even before the year prosecution period is up, and be on your merry way into your next property.

Most leases have provisions stating the tenant is responsible for costs associated with prosecuting a breach of lease, re-letting, and collections, as well as physical damages to the property.

You open up yourself both to civil liabilities from the seller who has clear damages, but also from the real estate commission who can either fine the parties involved or refers it to the courts for prosecution.

Currently the law is not being enforced but Jeff Sessions who will most likely be the next Attorney General has stated he does not support the Cole Memo which prevents the federal prosecution of most marijuana cases in states that allow the sale of marijuana. 

Maybe a threat of criminal prosecution would induce the owner to reimburse the association.Maybe you need no debit card and a bank account requiring two signatures on checks.