A change of title holder could certainly raise questions in an audit.  

Someone applying for a half dozen credit cards a month is signaling to the FICO algorithm that they are probably on a downward spiral and putting rent & car payments on the Visa.- Smaller loan amounts have higher rates.

Two totally different worlds and purchasing PROPERTY does NOT afford you any right to pull credit on a person(s) that you do not have a contractual relationship with.OP - Um...I wouldn't bid an amount equal to the first and second total debt if the foreclosing entity is the second lien holder.

@Horacio Gutierrez The original lien holder would prefer that you do a refi to get the loan out of the previous owner's name and into you (the current owner) name.

At this point, in theory, bank forecloses, property is sold for 200k, each lien holder is entitled to their share of the profit.  

Since you still have a mortgage on your first property, transferring title *could* trigger the due on sale clause if the mortgage holder looks into it.

But as it relates to being a mortgage holder how do I decide when the buyer has enough skin in the game? 

Hello bp, I'm working on a commercial project in NC for a Home Health Care Business seeking a 2nd lien holder position.

Back in 2008-2010 I had weekly conversations with ballooning loan holders that often ended in tears.  

Also, since there are state and federal rules about the terms you can use when originating a loan, I wonder if note holders also take on some new roles or obligations.