They can prevent a court from stripping you of your investment properties if there's a large judgement from a car accident you were involved with for example.

Trust your judgement on the situation. 

If they inform you they've vacated the property, or you notice its "abandoned" as defined in your state/municipal laws, you can take possession and still continue your eviction case to get the money judgement.

@Tatiana Duarte,To use a metaphor, when the down pour begins, it's too late to go shopping for rain gear.Trying to get properties into a business entity structure is greatly more complicated than doing it right the first time.Remember this about insurance without a business entity structure: if the insurance pays out, it means litigation was brought and you lost - your ENTIRE ESTATE is now exposed and at risk.

I believe you use Rain City, so you're essentially paying high interest and points on a higher loan balance.I know a few HMLs who could finance a rehab in our state as low as 8% interest, 2 pts, 95% LTC on a 1-yr loan, but they're not going to allow all the creativity/flexibility you mentioned (such as cross-collateralization of the down payment) to get to 100% LTC. 

So we had some rain the other day....

But at the same time scary here some of the issues:-Wiring/Electric issues: there were double taps and too small cables used-Standing water in half of the backyard (every time it rains harder according to the tenants)-One of the AC units is from 2003-AC air ducts are moldy-AC pipe in addict are crushed, insulation broken, taped with lots of air leaving-No drip pan and turn off switch for airhandler (2001) in one unit-Too little insulation-Moisture in the addict-Missing firewalls between the two units-One unit has copper pluming the other unit has recently received PEX, but where the wall was cut open to replace plumbing has not been closed and you can see lots of mold, mice droppings -One of the water heaters is sitting in water and mold on PVC and is rusting and leaking.

If it were me I would make a judgement call as to wether to allow it or not based on how well you know the tenant.

. $3,500 listed in judgements and liens on the titleGenerally, I am trying to understand who I can hold responsible for the mortgage obligation and, if no heirs step up and start paying what action can I take and how long and costly is the process.

That is something I've been trying to focus on in terms of advancing my skill set in making surface-level judgements in regards to profit vs. time management.