I just wanted to close this thread out by stating that I have received multiple emails and had an in depth conversation with current FIG investors, all of whom are very happy.  

It took close to 15+ years, but states are finally catching on that the majority of loans are no longer held by banks and by non-bank lenders who are selling them off to private equity and other non-bank funds including individuals and they are starting to hear about the shady stuff going around.Regarding straight sub-to and banks calling loans etc., this I think is longer term implosions as I am seeing people who absolutely should not be buying a home as they have no money buy them sub-to because of little down payment and will eventually lose the property and that is when many whose mortgages are still on the property come out and sue.

Our backgrounds include owning and operating properties under Choice, Hilton, Sonesta, and Red Roof Inn brands.This will be the second Marriott-branded hotel in Smithfield, with the other being an older Fairfield Inn.

A family member of mine decided to invest and just closed on the lot.

It was on market and we were able to structure a 10% owner carry after closing so it was only 10% down.

I currently live in/own a property that would fairly easily split into two units (upstairs and downstairs), and is located in an historic area close to hospitals, restaurants and amenities. 

I am looking for a few recommendations for lawyers and realtors in good affordable cities close to or along the Mediterranean.

I recommend not dipping into the deposit unless you have no other choice to pay the bill.  

Does the security deposit go to the new owners at closing, and does the tenant need to sign a new lease agreement?

The down-payment and closing cost shouldn't be that high for him to pay by himself.