They cant answer how a mortgage holder & a leasee not be evicted from the property if an NOD or foreclosure comes up!!

We are thinking of creating a separate LLC or LP as the investor entity that would provide funding (and that would probably be a second position lean holder on the property).

Showing the docs of the transactions will evidence the rights of the new holder, not a big hill to climb.

If money is passed through to seller for insurance, is the seller the policy holder or does the seller make the payment on behalf of the buyer/policy holder?

Sorry, failed to mention that we guaranteed payments and had the right to step in the shoes of the note holder, secure the collateral and dispose of it paying the amounts remaining.

Yes as a certificate holder you may foreclose after one year.

The tax assessor usually has the mortgage company listed, and the mortgage company will know who carries the insurance.Your agent could look it up for you on the CLUE report for the burned property.Any escrow company that issues title insurance can find out for you who holds the mortgage.The county recorder will know who holds the mortgage because it will be recorded there.The mortgage holder knows who the insurance carrier is.

In a judicial foreclosure state the lien holder foreclosing must first sue the debtor in court and obtain a judgement.

Along the same or similar lines were as a creditor's representative in bankruptcy court, representing note holders in collecting amounts due and seeking foreclosure remedies, I had little argument in opposition hitting on appraisal issues.

Here is my question I thought that sec rules has reits distributing a certain amount of income back to share holders?