Illegal is a reference to a criminal matter, the violation of a mortgage clause - absence of fraud - is a civil matter.Problems with this type of transaction occur in four areas1- If the lien holder decides to enforce the clause and accelerate the note.  2- If the buyer stops paying the seller, and the seller has to make payments out of pocket and due to foreclosure laws, bankruptcy laws, delaying tactics, etc., is unable to gain control of the subject property for a long time - in some particularly unfriendly creditor states 8 years is not unheard of!

hi im jose i have being interesting to invest on real estate for a long time but i couldn’t get decent help or info without paying a fortune so i keep it on side . hopefully i can get some help here to start up . i live in utah on the last recession i had to do a bankruptcy i didn’t lose my home but everything else i did , my credit was destroyed i just barely ok now , so i do have around 20000 save and i would like to have more info on lenders that work on second home loans and reasonable, i tried my banks and it was a nightmare because of the bankruptcy even dough it was 5 years ago and tons of requirements and paperwork they just waste my time . so again lenders or a way to male it work . thanks

Here are 10 methods to consider when searching for a motivated seller:Network with local attorneys, especially those that practice real estate law, and ask them to inform you of any probate sales that come their way.Look for notices of bankruptcy, divorce, or estate sales in the local papers.Purchase a mailing list targeting absentee and longtime property owners to use for direct mail campaigns from companies such as DataTree Lists or ListSource.Advertise on Craigslist or Facebook offering to buy homes for cash with a quick close.Use bandit signs at freeway intersections advertising "We Buy Houses" and include a local phone number.Search county foreclosure listings using sites such as Equator.com, HomePath, HUD.gov, RealtyTrac, and Foreclosure.com.Use For Sale By Owner websites such as FSBO.com, ForSaleByOwner.com, Fizber, and Houzeo.

Two have done 10k+ in damages and one filed for bankruptcy.

2) If someone file bankruptcy while you hold the tax lien certificate, do you lose all of your money on that tax lien?

They expect the syndicator to have a successful and verifiable track record record in real estate deals and not have any negative information (legal issues, bankruptcies, credit) associated with them.

Or does it make more sense to try to declare bankruptcy or some debt consolidation firm.

All bankruptcies must be discharged.

@Edwin WongI got my start in Real Estate Investing when I was 25 years old long time ago, fresh out of the Marine CorpsMy job was to interview homesellers and show them all their options, then have them sign a letter of intent to lease or purchase.My boss would then call them up and go over their options with them, and then they would go to the lawyers office and fill out the appropriate paperwork to sell their home.There's no substitute for experience in front of sellers.I have probably seen anywhere from 2500 to 3000 sellers in my lifetime since my first deal and 1986.I have experienced many different types of issues, such as probate, divorce, bankruptcy, no equity, hi Equity, Free and clear houses,  light rehabs, heavy rehabs, ABCD areas,etc.My best advice is Get a coach to help you in your first year, there's no substitute for ensuring you having success in your first year

The owner has suffered from medical issues and is now declaring bankruptcy.