In my case, there are back taxes (which are the impetus for the sale), one of the heirs has a judgement, and there is a thirty year mortgage recorded in 1974 that does not have a record of cancellation.

Also as a last resort the CO can garnish his wages and direct deposit if necessary, and even implement disciplinary action that is permanently attached to their record, so don't discount the possible benefits to you.Also as far as judgements go they are the best because you can cost them their security clearance and they know it so they will pay you to keep their clearance intact.

Do not mention their poor judgement in how they are communicating with you, as that will only add fuel to the fire.

I know it can be very difficult to recoup your funds even when you win the judgement, unless they have a current bond.   

Also no judgements >$2000 in last 3 years- worried about my tenant getting garnished. 

We allowed our relationship with her to cloud our judgement.

I have a judgement from a former evicted tenant.

What if they get behind on some finances like taxes or don't pay a contractor or get in an accident and a judgement gets applied against 'your' property?  

If you have each llc with sufficient capital, who knows exactly what that is, but for discussion, lets say $50,000 and insurance on top of that....ok, you are likely fine on the personal side...they just wipe out the llc....assuming of course they get judgement.

@Amy Taylor I agree you don't need a lecture or rude comments or judgement, especially during a stressful time!