The place is labeled as a single family but has a fully functioning 2br basement that works well as a 2nd unit. 

Never a one size fits all solution to an asset protection strategy.  

It doesn’t appear it was his intention to pay them back anytime soon.And in the example I gave about the overleveraged Subto that went bad, and the “Solution” was to sell to avoid a foreclosure on a Due on Sale, few if any of the Subto students can bring in $43,000 to closing, so it’s likely the property would go to foreclosure and the gator lender in 2nd position would lose most if not all of their money.

Just because someone messed up one time doesnt mean they have to be that label for the rest of their lives.

I think my partner and I may be exploring a complicated solution - glad to hear that it sounds like one exists!

Please let us know if you find a solution! 

You’re chasing the wrong people.You can’t just use a checklist like “tall grass” and assume that means someone is motivated.The sensible solution to foreclosure is indeed to sell, but the emotional response for someone in foreclosure is to find a way to keep their house, not sell it.And what are all the "experts" teaching?

A combination of these approaches could create lasting, scalable solutions across Texas.

I knew about ALE Solutions, but not CRS. 

They are however good at 20-25% down commercial portfolio loans if you need a creative solution so it depends on what your intended use is, your preference is, are you trying to get maximum leverage aka lowest down payment or is rate or cost your main preference?