Hi @David Flores,I don't know the ins and outs of FHA bank mortgages as I have yet to use this type of loan. 

August rent, security deposit, admin fees, etc.) by a date certain before August 1 and move into the premises on 8/1, your Offer to Lease is revoked, and the property will be listed and re-rented to another tenant. 

Also check with @Joseph Chiofalo for some further STR investor loan programs and he has a close tax rep we work with.

I had a rent-collection setup on Azibo for $1850/month, with an $1850 security deposit.

I am trying to raise the 10% down and bring in a partner or GAP loan person.

The city taxed the owner out of business, charging $21k a year in taxes, and all potential buyers were aware of this tax burden.We had other bidders, many of whom were churches, but they couldn't secure financing due to the high purchase price of the building.If folks like Former City Councilor Sarai Rivera were so worried about what would become of the building, they should have come forward before the sale.Personally, I'm glad they didn’t because it's one thing to be forced out of business and have your selling options limited by the city's burdensome tax policies.

Up until the trustee sale (foreclosure auction), the home is still owned and fully controlled by the home owner.I’m assuming you’re going to be looking at off-market properties (since loan status isn’t something they advertise on the MLS so you likely wouldn’t even know if it was in default if it’s a listed property).So, in that case, you’d just negotiate a purchase agreement with the home owner and then take the contract to your local escrow/title company to open escrow. 

What if no other insurer will provide a new policy, but my lender requires full ongoing coverage, and would treat a naked situation as a default, meaning immediate loan repayment or foreclosure?  

This will help you to make certain that your loan will secure adequate value.

I've been reading up on 203k loans as a means to acquire a main house and then fix up a garage as an ADU. 5.