This was set up for the purpose of flow-through income.However, I didn't set up any formal agreements with my investors, and the projects are fix and flips with 90-120 turn over times.

Let me also tell all the other posters we are not making a crazy profit, the spread is going to be less than 20% after adjusting the appraisal, and feel that we probably could have gotten the appraisal number up with a formal reappraisal and value dispute but we decided to move forward with the sale rather than waste additional time and consider it a learning expense for making a house too nice.

The lender would initiate a foreclosure process (judicial or not) and might get the property back if it didn’t sell at auction.

I have been browsing BP for a few weeks now, but haven't formally introduced myself.I currently stationed at Scott AFB as a Staff Sergeant in the USAF, and I work in Contract Management.

So if your tax situation allows you could JV in a formal LLC with your S corp as a member and him as a member.

If you're interested I can send you the formal invite that has all the details.

Wow, how much time do I have...LOLDeed/lien not properly perfected or madeThe loan was made illegallyThe wrong legal description was used on the DOTThe borrower stops payingCosts of judicial foreclosure if contestedImproper escrow management Documents at closing not properly completed or not in complianceCloud on title, borrower not having good titleAccounting errors in payments from previous note holderLoss of collateral and not properly insuredInsurance policy has no loss payee clause for the note holderNote purchase not in compliance, note not endorsedDeath, incapacitation of borrowerBankruptcyTax/workmen's/material liens createdFailure to comply with applicable laws for the note holderNo lender's title coverageSurvey issues or encroachmentsAssuming all sales proceeds from foreclosure go to the note holder Just off the top of my head.

In other words if I appraoch someone and ask them to deed me their property for a few hundred bucks and I want to skip all the formalities.

steve, i was thinking exactly what you posted....transferring title to the llc is just like a sub2 where you, the borrower, are still on the hook for the loan...you could look into having the llc assume the loan formally, and the llc is responsible for the debt, but i don't see a bank allowing that if this property is a deal of a lifetime, then you can probably find someone to lend on it, or go on the loan with you...i know that's not what you want, but it seems your best option at this point..if the deal isn't the deal of a lifetime, then it's probably best to move on unless there's some other sentimental reason you want this property....like someone else mentioned, it may be best to look for seller financed properties on the next one...good luck!

We're a non-judicial state so there's a ton of inventory here.