Do I have a lawsuit?

They are limited to charging orders only.Courts have found that the charging order protection was intended to protect other members' interests in the event that any one member was subject to a lawsuit, bankruptcy or other event that would threaten their membership interest.

If you're the beneficiary of the trust (and you would be), then any lawsuit against the trust will also name you personally.

If you give your LLC a warranty deed, and don't buy title insurance, and then you lost control of the LLC in a lawsuit, the LLC would sue you personally if there was a defect in the deed.

The only thing an LLC can do is contain the potential damage from a lawsuit to what the LLC owns and thus keeping assets you own outside of the LLC shielded.

Although they will get you incorporated, they probably won't protect you when that first law suit happens.

However, what are you including for the expenses that you can't identify, such as vacancies (not technically an operating expenses), legal fees, evictions, damage done by tenants in excess of the security deposit, capital expenses (not technically an operating expense), lawsuits, utilities (even if only during vacancies), etc, etc, etc?

I assumed (incorrectly, of course, I'm a foreclosure newbie), that since the bank on each lien was the same, and that I was bidding on the action on the senior lien, that the junior lien would be resolved automatically.My title agent is stating that since the mortgage company did not name themselves as a defendant on the senior lien lawsuit, that their junior lien is still outstanding and must be resolved before we can sell the house.

You mitigate the risk of a lawsuit by operating your rental activity in a professional manner.  

A problem you may experience is that you are setting yourself up for a potential law suit - did you take unfair advantage of these folks - were you honest in your disclosures - did you make too much money - will you have to go to court to explain to the judge what you did and why?