Hey there -- if you have any questions, my background is in real estate investment banking, REITs and equities trading.Cheers!

Speak with the owner, and see if he/she would be willing to do a rent-to-own or just act as the bank until you can acquire a loan.

If you have 50k in consumer debt, a bank is usually going to look at the total amount and use ~3-4% of the total as measurable debt service. 

This issue came up because I actually may have a pre-buyer for the house (although I'm not banking on it). 

I had been focusing on long term rentals but ran a hotel for 5 years and thought I might enjoy short term rentals more.

@Jonathan Cox the way i see it, and i may be crazy, is if your banking on a retirement account to save you when your 60 yrs old, you wasted a whole lot of your life away working for something that won't support you in the end.

After running comps, we could see that the property value was no more than what he owed the bank.

With all that said we have spent a ton of money for data looking at foreclosure rates, banking rates, where jobs are being created, where jobs are losing out, where schools are seeing rapid raises in enrollment, where governments at the local levels have been tax friendlier, where inventory on the open pubic markets are not meeting demand, and house transactions.

Problem we are having is that banks dont want to lend to an LLC without a personal guarantor but we don't want to have our names tied to it.

If the property is already bank owned, the old debt is cleared...EXCEPT for sometimes utilities, sewer, trash, and possible Federal liens.