Whereas, if you were to default on a HELOC against your primary, you immediately go into foreclosure and have a bigger concern than getting sued?

One thing is when they dont pay their rent before receiving a voucher but it is different from defaulting while being assisted and having resources at their disposal.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

@William CoetWe run a mortgage note fund buying distressed mortgages / do you think a bank wouldLend on defaulted loans?

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Banks do this because they know that with this difference a borrower probably will not get in trouble and default on the loan.This brings us back to small apartments.

You should have received a default judgement from that court case and that is a public record that any future landlords can see when screening tenants. 

@Patti RobertsonIn Virginia, is the contract assignable by default or do you need to have it specifically spelled out in the contract that it is assignable?

I need some gentle guidence as a start in what direction to go to find out foreclosure costs.My JV partner and I own a note and the borrower has defaulted and not paid in several months.

That means they don't have the financial means to afford your rental and are highly likely to default on the rent payment.I recommend you watch them like a hawk and start figuring out how to handle late payments, non-payment, and eviction immediately.