. $200 for single family or 10% of gross rents for multifamily is a good start, but you'll have to use your best judgement on things like the age of the property and the type of tenants you have.

If the seller for any reason such as : gets sued, tax lien, personal judgement, files bankruptcy, defaults on the mortgage, etc etc ......

I don't trust his judgement.

If you get a $700K judgement against you the umbrella policy pays the $200K part of the judgement that exceeded your primary coverage.

Since I try to negotiate the lowest price possible, I have the lender agree to a deficiency judgement waiver against the homeowner.

If you have to evict, perhaps offer them 50 bucks for moving expenses and offer to not have this on their credit history as a judgement which will remain a long time for future rentals.

In additon, the state wrote the rules and their "silent" lien has precedense over  even prior liens like mortgages, and judgements, and has no statute of limitations, therefore their lien plus interest is still good decades after the fact! 

Most lenders are able to get a deficiency judgement after the sale to go after other assets.

Instead he personally coached me on what to do next, without judgement or critique.

Property going to sheriff sale for judgement amount that is first mortgage in line including the taxes the bank has been paying.