Having been thru a number of real estate cycles since starting in the late 70's (and as an observer before that) I remain fascinated at how quickly people forget. 

The borrower avoids personal liability for deficiencies or amounts remaining due from any sale of the collateral which should be enough of an incentive, I've taken deeds in lieu and never paid them. :)  

Also, I'm hoping I can convince my contractor to take a down payment then hold the remaining balance until the project is finished and I'm looking to get a project loan from home depot that will help spread the cash requirements to the end also. 

@Matt Vaughn First of all that's a great question.Not knowing the finish on the two remaining walls I'll give you my two cents.If the walls have some type of Orangepeel texture (As is common in (Southern California) I would leave them in place and just refinish the walls.

At that point the seller can accept 59,500 (or less and pay closing costs of the refi) and then carry back the remaining 25,500.

Assuming this mortgage is almost 13 years old, could the $330,000 amount satisfy the remaining mortgage amount, the pool lien and the HOA lien?  

Current rents on remain 3 units, $1900.  60 Day notice given with m2m rents at $4050 for the 3 units.

Below are a summary of approximate proforma financials for the property:Gross Rent $13,200.00 ($1,100/Month)ExpensesManagement Fees $1,320.00 (10% A Month)Interest $4,131.00 (5% FHA (Approx 25 years remaining).

So the house is worth 105k and 68k is what is remaining on the loan.

They would rather remain passive, own other investments, etc.