After the property is taken as collateral it becomes "other real estate owned" or "real estate owned" (ORE/REO) which is apart from bank owned property that is the physical bank properties, main and branches.

For wealth building, the leverage betting odds are in your favor at this point in history with cheap money available and a lot of decent deals out there, but there is always risk in accumulating debt and you limit your mobility to purchase more deals with every new one you acquire unless you have significant capital resources.In rural west Tennessee where I grew up, I would only purchase property at a very, very steep discount which is often possible.

I spent the next 8 months in short term care, and physical therapy.

Consider using arbitrage here rather than focusing on paying down the mortgages, I would bet my mortgage that when done right, you would come out ahead that way as opposed to your way.Example, rather than paying the extra to the next mortgage, why not take that extra, get a cash out refi on the paid off home, and buy an 11 home!

That right there, and with your numbers, says to me its the safer bet.

Your best bet on a small mortgage is probably a HELOC, but they will want to see that you've owned it for a year.

@John HornerIf you want to get technical bird dogging is illegal if you get any compensation.Pretty sure it would be considered practicing real estate without a license and any agreement you put in place will just be knowingly trying to circumvent that fact.So if you ever took a bird dog fee your best bet is to turn yourself in to the local authorities and plead mercy by the court.

(I haven't looked but I'll bet other states have similar procedures.)

An HML is not going to subordinate their position, I'd bet on that.I doubt I do this deal, but, your money in a partnership is protected in the by laws or operating agreement in partnership agreements, filing a deed of trust or mtg isn't necessary unless you want to be a lender.

Your best bet might be an HML against your second home, which I assume is rented, if the cash flow is adequate.www.thenorrisgroup.com offers a 9.9% rental refinance over five years that might be helpful for you.