California does have a regulation for that. 

Thanks very much for your insightful comments, @David Oldenburg and @John Blackman, and for everyone's thoughts.With regard to some of the projects people are discussing, the crowdfunding regulations under which those are managed limits the ability to discuss the specifics beyond registered accredited investors, particularly those involved with the projects.  

(Effective January 1, 2015) (Adds Article VII, Section 25(B)(3)Proposed Amendment No. 13Act 872 of the 2014 Regular SessionDo you support an amendment to authorize the governing authority of the city of New Orleans to sell at a price fixed by the legislature property located in the Lower Ninth Ward of the city of New Orleans?

He worked for the government for 30 yrs.  

You will still be subject to the S-chapter rules for tax filing purposes.From an entity perspective and state law perspective, you are an LLC and will be bound by the state law rules governing LLCs and not corporations.Be very careful who you read on here and follow advice from.

So find out if the sites you find are actually PRE foreclosures or REO's.And a helpful tip for all: FHA & VA loans are guaranteed or insured by the government.

This was when the government had to come up with the Resolutioin Trust Corp.

My biggest fear is that a lot of people are going to get hurt as a result of the government sanctionedcreative financing known as the ARM.Some didn’t know what they were getting into with the ARM’s; all they saw was a lower mortgage payment with their CC debt consolidated.

I wanted to know if it is possible that a lien from a government education loan in default could be attached to this property, and does this jeopardize my equity?

The property owner or mortgage payer still owes for that debt that used to be back taxes, but they now owe it to you, the lien holder, rather than to the taxing agency of the government.- Any late fees or accrued interest on that tax debt after the sale of the lien gets compounded to that debt owed to the new lien holder.- If the property owner does, after the sale of the lien, pay off that debt, the money (plus any fees and interest) goes to you, the lien holder, and not to the government.