A second lien that forecloses takes the legal rights of possession from whoever owns the property but the second lienholder's position is still subject to the first lien.

Anyway, I got a letter from her last night indicating that she informed me of the mold issue back in Mar/April and nothing was done about it and that Section 8 has advised her seek legal aid.

I guess I am too late but there is a way that is a stretch and not sure about legalities in California.

So when you say you are using a contract option, legally you are putting them under contract.

Nothing i say should be taken as legal advice."

Funding Program Requirements: - Complete the Funding Application - Submit 1 to 3 page project summary or business proposal or Executive Summary** - An original bank “capability†letter or current bank statement, which states borrowers financial ability to place the minimum $100k or 10% (whichever is greater) of the loan amount into an escrow deposit - Last two (2) bank statements (When application is preapproved) - A company business plan (if necessary) and Insurance (if necessary) - Last two (2) years of income taxes (if applicable) - Borrower’s legal documents (Filing receipt, tax ID, etc) - Two (2) color picture ID for principal.

Any legal issues with getting cash out of the deal?

Perhaps you are referring to the listing Realtor and not someone who you hired to help you find a home.The problem from a conventional financing standpoint is that you have multiple residences on one legal description which makes this a multi-family property beyond the "normal" 1-4 unit residences acceptable to conventional lenders. 2)What is typically done to avoid making a down-payment and/or paying closing costs.If you are asking specific to this property, there probably is no 100% financing option available so you may have to pass on this one.Generally speaking there are many programs for little or no down-payment and you should be talking to a mortgage lender about what you can afford and qualify for prior to looking at homes.As for closing costs, you may qualify for city or county down-payment assistance programs (which are more typically used for closing costs instead of down-payment).

That six thousand hopefully could cover things that might come up like legal fees, and closing costs.

You can't legally change the original contract without having the seller initial any changes.