Any other way to deal with a situation like this to prevent from loan getting rejected ?

Again, please don't proceed with the sale with the encroachment; it could prevent you from securing title insurance and the owners could always take legal action to cure.  

You also pay directly insurance and taxes.Note: there is a due on sale clause with a wrap and a subject to transaction, and many times a property trust is used.Due on sale clause means that the bank has the right to call the loan due, but if the payments are paid on time, religiously, there is no real reason for the bank to call the loan due on performing, "in good standing" asset.Here's a business plan for bad credit entrepreneurs:One: understand that your bad credit is not stop you from operating a real estate business.Two: if possible get licensed sometimes bad credit prevent you from getting licensed.

I also think it’s more so to prevent the appearance of foul play, not necessarily fouls playAll that being said, I know many investors don’t use agents.

There has been enough gov bailouts stimulus and laws that are really trying hard to prevent another 08 on the residential markets.

Will anything about owning my current three family prevent me from doing this?

Will the lack of a job prevent me from getting financing on a deal?

@Aristone Louxz I’m sure you can sympathize with the small business owners that are struggling in this economy, they WANT to be able to pay you rent, circumstances are preventing that.

Had my agent done the inspections like they were supposed to, we could have prevented this loss.

Since CO law prevents the seller's agent from sharing any of that commission with me, I'm looking to put $7,000 in of that commission in someone's hand, and use the remainder to reinvest into the house.