A quote: "However, as set out in the KRLLCA, where the member/debtor is the sole member of the LLC at the time of the assignment under the charging order, the assignee/creditor shall have the right to participate in the management of the business and affairs of the LLC as a member."

You were willing to pay for the first and the second mortgages, and the IRS lien could be released from the property and remain with the debtors who owed the IRS in the first place.

Almost everyone will pay their rent over any consumer debts as being homeless is much scarier than a bad credit card debt or a repo'd automobile If they provide a good prior LL report, move them in.

Anyways, depending upon your state laws, you can often seize property from the debtor after receiving a judgement and doing the proper paperwork.

-Joe Rudi, Baltimore I'm not sure of the rules in MD regarding garnishments, but what I typically do is once there's a judgment go after the bank account.You can also pull a credit report as usually one of the grounds is collection of a debt or rent.

Your Cash on Cash (CoC) is the ratio of the Cash Flow Before Taxes (CFBT) / Cash outlay {read: the amount of cash invested} ... though I've seen some folks {incorrectly} calculate it as NOI / Cash Outlay ... which would be true if you had no debt or reserves.As an example, say you bought a $100K property with a 20% down payment, an additional 10K in make-ready renovations and 2% Closing costs, your cash outlay would be: $20K + $10K + $2K = $32KNow, suppose the property throws-off $200/month in cash-flow each month {NOI - (debt service + reserves) } or $2400/year.Your CoC would be 7.5%

The loan, now unsecured, stands alone on its merits for the lender to determine if legal or practical to attemp collection from other assets of the debtor. 

It helps the debtors.

If it were me and I don’t know your situation but I’d buy the war zone home cash and live in it rent free with no internet cable eating rice and beans for 2 years and get crazy with that debt or as others said restructure It somehow.

This will save a big chunk of cash for future investment and may shorten your investment time table.If you were already loaded down with lots of debt, or were getting much higher interest rate, or adjustable rate, or for a shorter period of time, or you were in the pre-retirement phase of your investing career, then the answer would be different.