Rich,Loans are sold in three manners:Par - 100% of the Unpaid Principal Balance (UPB)Premium - +100% of UPBDiscount - < 100% of UPBNew conventional loan originations are generally sold for Par or Premiums.  

Check with the utility companies to make sure balances are $0, pull mortgage satisfactions, etc.

If any outstanding balances remain as of the 7th, a Notice to Vacate is served.    

However, that doesn't concern me because I always pay the balance in full and have never paid any interest. 

My experience was that I never collect the balance and they left the house needing repairs.  

(Note, I settled the loan for less than the full balance and received a settled in full letter saying it had a zero balance- dated Aug 2011.)

A mod'ed first may have a deferred principal component that does not show up on the loan balance and could wipe out any perceived equity you may have in second position, for example.Bob

(unlikely)3) If reserve not met, foreclose, then based on our TBD agreement, the 1st deeds property to us after payment of their balance.

Beware that some of the cards you'll get can't be turned into cash without crazy cash advance fees and the ones that you can convert are thru balance transfer checks that typically cost 3% to convert.So as of now my thoughts are that yes it can get you cash but just be aware that the total amount of credit you get will not be the amount you can truly use and the fee for this was $8,995.00 which they grabbed as soon as we had the 50k guarantee!

You need an asset account to balance the liability:xxx tenant deposits paid (asset)yyy tenant deposits held (liability)QB is not nice in this area and requires TWO transaction; one to reverse the Paid vs Held and then the transaction to move from Chk-2 into Chk-1The asset/liability will only show up in the Balance Sheet report.