I need help understanding this idea that your lender will help you collect on insurance claims if you have a high outstanding loan balance.In this scenario, if you have a high loan balance on a property, and your property gets largely destroyed or damaged, you then have to collect on a HUGE insurance claim.

If there is a loan outstanding greater than your winning bid will you be responsible for it? 

If I qualify for an FHA loan, because A) I don't already have one outstanding, and B) I'm willing to occupy a property for at least one year, does that alone provide any value to a potential partner (real estate investor)?

What if we were to sell the house we live in and then use that profit to pay off the outstanding mortgage of her rental property?

They are nationwide as well. 

But given BP is nationwide, everyone should check with your agent on the specific language on thier policy as coverages can be different from coast to coast.

But be aware, when you do this, you have to pay off all the other outstanding certificates to send it to sale.  

OUTSTANDING QUESTIONS- Are attorney fees to start LLC and file with state/county considered organizational costs ( vs startup costs)?

Takes a lot of study in invest nationwide

It is possible the outstanding debt is $361K or that is the minimum level they can take with write off percentage.