However after taking over the solar panel loan, the solar company told us that because of a lawsuit with the previous seller, the solar company had nothing to do with the existing solar panel on the house.

Gillette states, I think I am a great person to comment on this issue:From a risk mitigation standpoint, which is the reason we lawyers exist, having properties in your own name can result in huge law suits for inordinate amounts of money.

Now you know why these frauds don't want a license: they would be open to LOTS of lawsuit, suspension and/or revocation of their license.

Big picture, it's possible in certain instances that you could make money on those seconds, but it will be a long haul, require up front investments in law suits against the borrowers, and require those borrowers to recover enough from their foreclosure to have sufficient assets to actually pay you within the time allowed to collect on your judgement.

Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

It sounds like the first buyer may be trying to use the threat of a lawsuit as a scare tactic to try and get you to sell the home to them.

It really should not be an issue if you are upfront and honest, basically the rules are put in place so nobody gets taken advantage of.2) Would not be a bad idea to consult with an attorney and have some contracts written up that protect you from any lawsuits when you are wholesaling. 

Thank you everyone here for the Advise & help.just an update i spoke with my Attorney today he said the buyer can definitely NOT beck out at this point if anything i can void the contract due to him not sending the EMD but the buyer cannot. there is not much i can share publicly but do to the specifics in my contacts the buyer is still bind to the contract & he has to close otherwise he can face a lawsuit at least in my case. but one thing i learned for sure its always good to ask a professional attorney because sometimes even if you think its a lost case it can still work in your Faver much more then what you know.But again i appreciate everyone's advise.

I haven't wanted to hold title to real property in my retirement account because of lawsuit risks, and the inability to claim depreciation. 

Plus I think Covid threw off a lot of things...from the lawsuits, to people being in the office etc.While you would think there are a lot of standard procedures and same law applies all over the state, I find this less than true.