You need to determine if you wish to exclude them or not.

Also, you may not seek any deficiency judgment as the lender accepts the property as full payment of amounts owing, it is a deed in lieu of foreclosure.A bit more as to Special Warranty Deeds, they may limit warranty for a period of time, but other matters may also be excluded, buying Subject-To, the SWD will except out the existing underlying mortgage lien.

If you have more than 4 non - owner occupied homes they exclude liability as well. 

Most tax auctions require the bidders to commit all or a substantial amount if money in order to bid on a given asset.Due process is what owners and excluded claimants whose rights and benefits were adversely affected, petition judges to reverse sales. 

I wouldn’t exclude it as a criteria for a SFR, but just calculate it in and use as negotiation tool.

As far as the matter being excluded from coverage, the Court in the Florida decision FIRST AMERICAN TITLE INS.

@Jet ParaderoYou may not need to move back in if you kept it as a personal residence from the time you purchased it(December 2015) and the date that you turned it into a rental(June 2018).Excluding gain on $540,000 - $333,0000 is a lot.At the federal level, you would likely be saving $30,000 in tax.

There are some that will provide coverage with Animal Liability excluded which would be extremely bad for you if there was a claim.Regardless of who's realy at fault the incident is, they will look to make it the fault of the person (you) with the deepest pockets.

Hi @Sean AutryYes some of my expenses would be different from normal rentals but I have them broken down and you could exclude all electric, gas, internet, TV, and furnishing costs and they would come out pretty much the same.

@Austin Carr one other thing to be aware of is that the rules for fair housing are usually different if you have less than 4 units and are owner occupied (California and maybe other places excluded).