It's the legacy of the life you led and not what your number was in the pecking order against anyone else.Stuff is nice to have and can make life more comfortable in certain aspects but it's mainly stuff that is sold off at estate sales to churn the money.

Sometimes churn is inevitable.  

Lonnie Deals don't rely on refinancing or loan churning.

I am sure you'll churn through a few of them as your generally going to be working with the bottom of the talent pool but if that's something your good with doing I say go for it.

CASH in the bank at anyone time .. and it would be fairly quick to have a default if they were ripping rents and not paying senior mortgage lender.whereas with the loan fund they just keep churning the money... and it takes years to figure it out and by the time they do its one of these whoppers.

I mean, what does that get you as a landlord/business owner, other than more churn?

If the third position was not properly notified of the trustee sale in some cases it can be reversed.Generally in these instances you are refunded your money from the purchase but not any improvements or anything else you have done with the property.This is why investors wait on IRS liens until they are clear after foreclosure (usually 120 days).If their is substantial equity maybe the third position buys you out to recover some money or just writes off the whole thing.Each state is different in how these things work.You can call a title company or a local foreclosure attorney but I think you really need a real estate litigation attorney.The title and FC attorney will give you general info but it sounds like you are way past that and need some help at least.Paying the attorney will be well worth it at least for a consultation.If they can remove a roadblock faster then that is better than months and months of holding costs and not churning your money.No legal advice.

He was "churning" tenants.  

Whether it's "good debt" or not, if your stomach churns and you won't be able to sleep well at night with that kind of debt, then don't do it.  

This area also seems to have a lot of long term tenants so hopefully we won't be churning tenants too often.