I have been told that ANY single family home in Louisville KY may be duplexed without a zoning change and or conditional usage permit.

There are several legal concerns with your proposed business model which should be reviewed by a local attorney before you begin leasing.

Account ClosedNice to see you participating in the forums ... and the small step forward of dropping one of your frequent {stuffed} keywords from your post.The handling of a squatter vs a tenant will undoubtedly differ with jurisdictions, so the ultimate advice is to consult your legal counsel on the matter.The crucial distinction - at least here - that that a squatter had no legal right to be at the premises and is essentially in trespass / illegal possession of the property.  

it's not the zoning you're changing but the legal usage btw.

Under Alabama law, Tina now has all the legal responsibilities a landlord has, including the responsibility to make repairs, etc.I strongly discourage people from entering into subtenancy relationships. 

(A basement apartment or carriage house is actually the only way you can do short-term rentals full-time legally here in Denver.)

Fiction: I like legal thrillers, stuff like John Grisham. 

Now if you never met your tenant and had a outside property management company and never personally inspected the property you would likely have a perfect defense to that claim but even then they could sue you and you would have legal fees etc to defend it.  

I'm sure this is a legal questions, but any ideas on is the lien enforceable on the new owner?

I did contact the borrower, & she volunteered to just send me the interest due.I will send her a Release of Promissory Note.The title co. did not provide any sub & recon document for us to sign.Their legal dept. copied & pasted some Calif regulations into an email & said they were done.A realtor friend has one I can use, but honestly, I'm going to get some help to fill it out.I looked up the title co on Yelp & see they have horrible reviews from what appear to be legitimate, experienced people.