In this particular case, the original debt was $4k and the collections firms are asking for $27k after interst, fees, etc. 

Is ANYONE doing non-owner occupied HELOC's in Los Angeles or am I chasing my tail?

It sounds like you are thinking of buying in non-local markets to where you live?

I am pretty sure they do the same.Now while most of the posts on here are pretty harmless, we don't name names, we talk about business and usually just offer opinions there is many on here who offer opinions (particularly about tenants)  that I certainty would not want my name on in a public forum.

And if you decide to move forward, make sure they pay for the background / credit check fees, and clearly state that it's non-refundable whether they pass or fail. 

Many wealthy people have lost an incredible amount of money this way.In this particular deal, it's a $350k duplex.

We create the LLC's in states that have non-piercing laws so that its more difficult to get to our personal assets. 

When it comes to assigning the contract, make sure you lock the buyers up on non-contingent agreements so they can't back out without losing their EMD.Experienced buyers are used to competing on deals and will fight to close as quickly as possible.

It is possible - but not likely if the payments are being made on time - lenders are to busy chasing non-performing mortgages to worry about one that is being paid on time - but it is possible - it never bothered me and I've done many of them.

Help me answer this question houses are selling at 220k non renovated and there is no available inventory in the area.