FL is also a judicial foreclosure state as well, so you're going to need an attorney anyway unless you plan to represent yourself or unless you don't care and want to get pursued for a deficiency judgement.

That will depend on state law and may not be an option if a judicial process is required.Unless a state approved deed of trust or security agreement is required to be used, the DOT does not need to be a standard boiler plate, but I would not advocate any broker or investor to take on any modification without close legal consultation with an attorney having specific lending expertise.

Most judicially approved sales are non-assignable.

Here are the specs:Big HousePurchase Price $1.5M1st & 2nd Total $1.35MMarket Value $1.25M Completed Rehab $150kRental Value $5,500 per/moPurchased as a 2nd Primary ResidenceLoans are 5/1 IO ARMs that have adjusted down considerably with 6 mo adjustments thereafter.1st & 2nd & Taxes = $4,140 per mo.Not So Big HousePurchase Price $1.255M1st & 2nd Total $1.13MMarket Value $975kRental Value $3,750per/moPurchased as a Investment PropertyLoans are 5/1 IO ARMs that have adjusted down considerably with 6 m. adjustments thereafter.1st & 2nd & Taxes = $4,836 per mo.The options being considered to offload these properties include:1.Stop paying each note one at a time in attempt to settle each note one by one.2.Stop paying all at the same time and doing short sales on both.3.Continue renting the properties at a loss each month till the market demand begins to recover then offload.4.Stop paying all at the same time, saving the rent and after 12 months offering the bank(s) the rent savings to do a died in lieu.5.Do traditional sales on both and cough up the difference.The owner is concerned about the 1099 they’ll receive from doing short sales or judicial foreclosure if the bank says loan fraud with the Big House property that the owners never lived in.

You living there you should have gotten some mail from the lender.The lender usually still believes the homeowner occupies the property so sends notices to the house you are staying at.Kentucky appears to be a judicial (court) state with average time to foreclose 6 months.The property has to appraised before it can be foreclosed and sold.Ways of knowing foreclosure has happened or not should have been provided1.In the letters mailed out by the lender2.The lis pendens (legal notice) filed at the court house.3.Newspaper in the legal notice section.The fact that I pulled this up in under a minute but your broker/agent doesn't know what is going on is scary.If the agent has this listed as a short sale they should have an ATR (authorization to release) signed by the borrower giving them permission to talk to loss mitigation (the lender or servicer) about the file (loan).How you work the short sale will depend on type of loans,junior loans and other liens attached and a whole bunch of other factors.The lender might want the property marketed for sale for so many days to see if higher offers come in that would net more than your offer although the lender might take into consideration you already live there.Month to month you have no foreclosure protection tenant laws.If you had a long term lease in place the bank would have to honor the lease under certain conditions.

I'm in VA (non-judicial foreclosure), and will be using private lenders to fund rehabs.

If the property is an REO, a short sale or listed on the MLS, there will almost certainly be an agent working for the seller.In the case of an REO or short sale, as you know, the wholesale process is more complicated.

In theory it seems like a great, complicated idea.

Greg,This is a more complicated question than it first seems.

It may seem a little complicated but if you get a great property at a great discount, it'll all be worth it.