That would be a terrible situation, but I would imagine you would be liable considering they tried to have you deal with it and you didn't.

This is how I have been buying single-family houses.1) Find a house in terrible condition, deeply discounted because a retail buyer cannot get a conventional loan on the place. 

Most of our applicants have no bank accounts, have terrible credit, and it is difficult to know where they’ve really been living.Lower loan amounts.

Some are just terrible. 

I went PT. w/Chase so I could focus on real estate and get out of my banker role, hated my job terribly... anyway....

If you are comfortable with the rehab costs and have a strong cash backup it's not a terrible looking deal on paper.

The walls and floors were in terrible condition in both units, but nothing I couldn't paint over/tear out and replace.

Which, given NJ taxes and bad winters, would be very few if any of the notes offered.Parking that kind of money into one or two loans in the north east is a terrible idea if you don't know what you're doing. .... .... ....

I'm kind of bummed out I found 2 3 unit apartment buildings and the owner was letting me do subject to financing and I was only needing to put down 5000 to take over existing financing and while in the process of going over everything I realized they had TERRIBLE financing terms that absolutely kill the cash to nothing at all..

It may have deferred maintenance like @Roy N. said, a terrible layout or in a very bad location but its still overpriced if its not moving.