So, borrower may still be on the hook for deficiency, depending on state, and the entire balance still due.So, it plays out as a simple foreclosure.  

If deficient, I can run a sort range of 92801 - 92899 or similar zips to get the first group of records. 

Just as expected, the house inspection brought up a whole slew of problems including foundation, electrical, plumbing, and ventilation deficiencies, along with two cracked rafters in the roof.

Thats some serious deficiencies there.Don't write it off just yet.

What this means is that the bank cannot go after the owner for deficiency judgment (if any).

Then of course the lien holders might challenge the deficiency in notice, and deficient notice is the gist of most TCB court cases that I've come across.

I'd brush up on my grammar before typing, if you want to talk about not doing things one isn't familiar with, with reading and writing being your deficiency.

That may be a better solution than taking it to foreclosure, in this case I don't see GMAC eating 45K exceeding such alternatives and perhaps having some things done, protecting the collateral, and holding it for sale.The other factor is the borrower information, likelihood of obtaining a deficiency judgment or will they be headed to bankruptcy?

The money would be at risk and the lender would have access to the collateral (the property) without the opportunity to go after some deficiency judgement for the balance if the language in the loan and your actions are normal for a non-recourse note.Note that you have to have a non-recourse note to do what you're trying to do because a personal guarantee would be considered an outside benefit to your SDIRA.

When is the best time to secure insurance when the property is an REO with obvious deficiencies such as active roof leaks, broken windows (secured by plywood by the bank), missing kitchens, swampy pools etc...Down here in FL we need windstorm, flood and general liability and it's a big expense item.So obvious with those deficiencies when you ask for a quote they need a 4 point inspection report which will clearly document those deficiencies and that would increase the premiums even though your intention is to take care of them as soon as you close.What is the best way to handle this?