JC - Having access to money to use to buy property can be an intoxicating thing and can sometimes lead to clouded judgement.

not to worry about judgements against the seller in a wrap transaction as they no longer own the property so the property can't be attached... due on sale is there its the alienation clause.. does it happen it can but not often.. but I had 2 called on me over the years.The danger in this transaction is squarely on the sellers credit. 

There is no reason to have your property tied up with a long term lease as the tenant can leave at any time and generally cannot afford to pay a judgement if you sue.

I told him if he cleaned the house and was out by the end if the month I would deduct $1600 for current month rent from his $2400 security deposit, refund him the $800 balance and not seek judgement for the remaining lease balance.

You will get people redeem you within 1 week and some that will redeem after two years only days before you would get judgement on a foreclosure. 

The concern is how to protect the entity's assets if the owner ends up with a personal judgement against him. 

Good morning, SWLR can be a block by block judgement call.

I guess usually because the amount of damages is so far greater than the value of their assets that they are "judgement proof" anyway.

Two problems I see is the work to get it looking like a decent place to live (for tenants) and perhaps violence and crime in the park (not sure if that is even an issue just a judgement call)

@Jen PothilatIf the living trust has a judgement against it -you think the properties in the trust are not at risk?