If property insurance lapses Lenders can do what's called "forced place insurance" on your mortgage.Generally the lenders buy the Cadillac plan that covers everything and escrows the payment into the total mortgage payment due.It is much cheaper for the borrower to have their own insurance then for the lender to force place it.He could always accelerate and foreclose depending on how costly and time consuming that is for that state.I would think foreclosing and accelerating the note would be the same motivation as when a tenant tells you a few more days and you will get the money and you file eviction and the money magically appears.It seems if he sends the foreclosure and default notice the buyer will know they are serious.

What was the source of your motivation?

I think its great you are excited and motivated about investing but from the little you mentioned about yourself it seems like the deck is stacked against you and it may be a reality that this is not the right time for you.

Neighborhood has little pride of ownership, drug activity, etc. there are jobs as its next to a large prison, schools and hospitals.Rents really cannot be increased as there are new developments renting new 3bd homes for as little as $600.Tenants are typically short term and if screening is tough the units remain empty.

Now, we are getting somewhere, as I heard that is one way of finding local deals with motivated sellers.

The rent remains the same.

By doing so, you don't have "clean title"; if such a transaction required title insurance, the title insurer would list all liens of record that remain unsatisfied as uninsured / exceptions / exclusions on the title policy.

The remaining money is in a reserve fund which we are dipping into to replace the roof on my grandmother's home.

One is to find something that you find, at least to some extent, enjoyable and motivating.

These investors often turn into very motivated sellers, or worse.