Also I would recommend they talk to a tax or real estate lawyer on this one - dont guide them.

Hence you do have the ability to protect your position if it makes economic sense.There is no DOS issues if you effectively assume the 1st after foreclosing.

I've gotten a contact, (RE lawyer) which I'll be consulting today for some advice and see what he may recommend as far as state processes go.

I suggest a bit of money spend on a lawyer is best.

How will this effect investors starting out trying to get a mortgage for the first time?

the challenge seems to be in finding an escrow/title company that will allow the "double escrow" to be done.....for example: there is an escrow open that is required by the lender once the "approval" from the lender is secured....then there needs to be another escrow opened between the "buyer" and the "end-buyer" on the same property....so, "end buyer" comes into escrow with the $300K plus closing costs, closes existing escrow on the property...then the title/escrow officer walks into the next room and applies the $250K plus closing costs to the original escrow to close that one.in theory and once in the past this was the way it was and still should be...but, now as it seems, most escrow/title companies are not wanting to do the "double" escrow for reasons of "full disclosure" to all parties, for fear of not being "sued" for some type of fraud.those of us not engaging in these tactics get penalized.....but, such is life....i have a title company that has stated they will do a "double" escrow but, will need to let the lender know this fact. not disclose the "amount" the "end-buyer" is paying, merely disclose there is a 'double" escrow in effect....well, obviously this should kill the deal right at the very end....so, not a wise direction to take....

He thought that they would split the money and give him more sinse he put more into it than the other two.Now his lawyer is telling him that it won't work that way and he would have to place a Lien on the house.What do you reccomend him to do?

A lawyer can tell you about the legal process.Warning: As I noted the above is very much US centric advice.

They may get really cheap when the casino smoking ban goes into effect on Jan 1, 2008.Jon

We get to feel the smelly effects of an ignored septic by walking around the exterior of the SFR.