The reality is we can't help everyone stay in their home; there are many different reasons why some homeowners can't stay including they are too past due, they have no job or their income is not enough, they are self employed and don't have stable long term income, the property value is too high, they have too much equity,  and the list goes on and on.

But things get more complicated when a lot of these people renting out their basements illegally are also not paying taxes on the income... and then theres Insurance & liabilIty Issues as well. anyways, I personally am trying to find a way to do things as legally as possible.

At $89k ask, there are $5,500 in closing costs ($1,500 of that is tax prorations) and then $2,100 in prepaids (insurance/taxes).

@William Larson Make sure your insurance policy covers your complete annual rental loss.

How did you research and evaluate those "costs" of leaving the corporate world, how did you find health insurance for you and your family, etc? 

The bank will find out when the insurance policy is updated. 

It sounds like any other sale, even though it is being done by auction.  90 days is Plenty of time to get financed, but you’d have to make sure:It’s zoned as residentialIt will appraise for your bid priceYou can have access for insurance and lender inspections/appraisals.It is in good enough condition to get a conventional loan, or you could take a shot at a 203k or Fannie purchase/Reno loan.The auction terms/details Should tell you if this is prohibited for some reason.  

I'm not even sure how this would work since the insurance company is paying HH and HH would be paying me.  

Typically, borrowers must provide title insurance policies to protect the lenders' monetary interests.

.$430,000 (ARV)-$310,000 (Balance could be plus or minus several thousand)-$20,000- Holding Costs (insurance, utilities, PITI, etc) about 6 months...