The only security you can offer a HML is the AOM and/or a security in another asset that you own which has equity, essentially cross-collateralizing your debt with him/her.

It will be owner occupied for a minimum of a year and i currently own my own condo which i will rent out so the multifamily will be my primary home.FactsPrice range for the property is 300K - 500KMonthly payment for all properties i have explored with agent is 925-1230 (all the analysis factored in projected rental income and maintenance and most of them were already rented which gave us the rent needed for underwriting)Current cash saved for downpayment = 45KIncome = 80K (45% is 3000/month)Condo PITI+HOA = 720  (currently FHA)(market rental for similar units in my area is 1000-1200)Total monthly debt + Condo = 2000 (approximately 250 is credit card debt at 0% that can be paid off if needed but have been saving the cash for DP)As you can see i will not have enough for a 20% down conventional and cannot go FHA because my current place is FHA financing (the refinancing process would take too long to switch to conventional).

Inform your lender that the title company will take care of everything and that they may call her.They can generate the note and deed of trust common for your area, they have an attorney in house or on retainer and they will tell you what the charge will be, probably $100 or so for the note.Your lender needs to provide certified funds to the closing company ahead of settlement, they can tell you when they need good funds.Sit back, wait, go to closing, the title company will take care of documents, disclosures required and filings.I also suggest a loan servicing company, search the benefits here on BP for my posts concerning "Loan Servicing".

This alone saved me thousands.I have a home inspection set up for the end of the week and settlement is scheduled for April 17th. 

At this time, my current financial goal is to eliminate my student loan debt in 3 years and have enough capital, confidence, and knowledge to start investing before that 3 year period comes.

@Jon Holdman  alienation clauses are in the Mortgage not the note... generally... note is promise to pay and spells out the terms of repayment etc... of course some have dual purpose language but mine that I do all have the alinenation in the mort or deed of trust or deed to secure debt that is recorded giving the world notice that if title is alienated that that is an event of default and at my sole discretion I can call all sums due and payable.

Couldn't they bid up the price in the auction to cover their debt?

Make sure that the person isn't actually knee deep in an open house or on the way to a settlement when you call.

To be considered, you are in imminent danger of default, you have no equity and you have no reserves to service the debt.

Sorry @Nick Scalero paying down debt would not qualify.