Loans that were 90 days or more past due climbed to 2.88 percent of outstanding balances in the second quarter, from 1.18 percent a year earlier, according to New York-based property research firm Real Estate Econometrics LLC.

FNBA has been outstanding, and I plan to borrow from them again. 

There is a lot of outstanding debt that would tag along with this property which has me worried.I have heard that it is possible to let the bank win the auction (assuming no one else out-bids them) and then personally work with the bank on a deal after the sheriff sale is over.

does it have outstanding water, tax liens?

That would be like saying that if I had an LLC and had loans outstanding or I had personal loans from an investor on the real estate that I was deliquent on, it's OK to overlook those since they don't show up on a credit report.

I also prefer to use a new note siting the old obligation being modified which takes care of ommitted issues, but you can go either way, changing terms paragraph by paragraph as needed along with rates and remaining balances agreed to be outstanding.

Sometimes you can even pay less that the outstanding taxes depending on the length of time the property has been out there. 

You have a great opportunity to build outstanding credit but it takes careful planning.

You'll still have the outstanding taxes to deal with.

Pros: much quicker than conventional, can invest through an LLC, more flexible requirements, no income or personal DTI requirement, no tax returns required, no limit or a higher limit of loans you can have outstanding (not capped at 10 properties) etc.