The bigger risk is to the seller .. now WA is a purchase money owner occ state.. that means a loan used as purchase money to buy a owner occ home . there can BE NO deficiency judgement by statue..

It would only fulfill the owners needs in a very small percentage of cases.With the low interest rates, relatively easy money, and endless investment capital available today, an attractive property reasonably priced will easily sell so that there’s no inventive for a seller to consider a master lease instead unless the property is deficient in some way or he’s priced way above market.

You can't get a good WRB application over deficient siding. 

The short answer is Judicial (Court Action) the bank can come after the seller for a deficiency in the loan. 

From my experience most investors are having much more success buying the note pre-foreclosure.One reason is you buy the note and then for waiving the deficiency against the seller they sign over title to you.

At a minimum, if your willing to pay a portion of the deficiency, say your needing to relocate, GMAC has been good about doing no hardship shorts, however, they generally will not consider it if your not late.

I believe ASC is reserving the right to pursue a deficiency, although it doesn't acutally SAY it like that.Would someone be able to interpret this for me?"

I believe the last one was another investor in the area and the owner shut it down due to the lender wanting to give a 1099 for the full deficiency.

I just don't know what they hope to accomplish and I hope its not to pursue a deficiency if I end up shortselling.

When you drive by, walk up to the house and take a look for potential deficiences - missing siding, a sagging roof, foundation/chain wall/visible pier and sill issues.