Legally the Trustee will become the party who controls the asset and usually moves to work with the Mortgagee to satisfy the lien through disposition.

Strategically, it also frees up the lessee from eventually having to disposition the real property.

If the auctions in this area do well to disposition the homes, then a Mortgagee may not consider the bid at all.

You typically have two years to find property that must have a similar use: Our friend @Bill Exeter has a great page detailing this type of exchange: http://www.exeter1031.com/1033_exchange_faqs.aspx#howSection 1033 US Tax Code(B)Period within which property must be replaced The period referred to in subparagraph (A) shall be the period beginning with the date of the disposition of the converted property, or the earliest date of the threat or imminence of requisition or condemnation of the converted property, whichever is the earlier, and ending—(i) 2 years after the close of the first taxable year in which any part of the gain upon the conversion is realized, or(ii) subject to such terms and conditions as may be specified by the Secretary, at the close of such later date as the Secretary may designate on application by the taxpayer.

Like @David Krulac I fall in-between the polar points expressed here.Though we hold mostly multi-family properties, we do have a few SFRs which are student rentals at this time.In the case of a property that may be sold to a retail buyer, I agree that you would wait until you were preparing for disposition to affect the final cosmetic renewal and possible quality upgrades (i.e. moving to soap stone counters in the kitchen).That said, we look to affect efficiency retrofits early in our ownership of a property - usually at the first opportunity provided by turnover.

In my particular role in the industry of dealing with loans as an investment which includes loan files with appraisals in them and REO disposition, I get the privilege of seeing all the players in volumes.

Sounds then like the debt was reaffirmed, probably the case if it was owner occupied.I suggest you find the BK, the attorney and inquire as to the status of the property and you should be able to find the disposition in records.

More than adequate liability insurance is the 'advised' norm but the latter will not cover illegal action, the pursuit of voracious creditors or the many exclusions including ingesting Lead paint.We also record & file weekly minutes, as well as all resolutions regarding any new acquisition/dispositions etc

You can give them bonuses; however, prepaying them for a flip won't help as it would be held in COGS until disposition of the property.

This provides us with another option at the time of disposition as we can sell the company, leaving the existing financing in-place {though some lenders have extended their due-on-sale clause to include changes in control of the owning entity, making this more difficult}