Just a thought... it's been raining so much that people aren't out looking for houses.

Original mortgage was $125,000 and the judgement amount was $120k-ish.http://www.remax.com/realestatehomesforsale/5626-old-route-ste-22-shartlesville-pa-19554-gid400037463090.html

. $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.

I know two companies told you two different things, so I would use your best judgement.  

I also get a personal guarantee with SS#, DOB and contact info. making it clear to the borrower that I will pursue a deficiency judgement.

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....

If you don't record the judgement it may not show up when they land at the next landlords doorstep.One of the classes on the National REIA Winter cruise last week covered recording the judgement to keep them from getting a loan without paying you off first AND making it easier for Rent Perfect and other tenant screening companies to find it.

@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.

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.