Can i do a subject too deal and live in the property and keep if its underwater or is it better to rent?

This obviously is a little bit touchier of a subject.  

More agrees I've with enforcing rules, more frequent property inspections.

Are they willing to do subject-to or seller carry?

You most likely know the original owner and you can contact him about buying subject to the mortgage.  

While you may be exempt from the DF Act, you are still subject to predatory lending issues, too much financed, over priced property, borrower placed in a position where they can not perform, lacks ability to pay, and other matters may apply.

They then have more opportunities to frequent local business, contribute to charities and enhance the economy of The Dalles.

These articles are very subjective and often times don’t represent the complete picture.

What happens if a buyer buys a house subject to the existing mortgage and then defaults on the loan while its still in the seller's name?

Form 3 (or more) LLC’s to avoid having all assets being subject to getting sued. 1 – An LLC as the buy and hold holding company, 2 – An LLC for flips, 3 – An LLC as the operating company (heads into contracts, collects rents, etc.).