Don't go into debt to repair your credit that is how you affected your credit score to begin with.

From my perspective on the market there are several factors that recently occurred which will influence the market:Dodd-Frank is changing it's affects on the market (This includes many loan related laws).

I know quite a few people affected.

Many of these are a result of the Dodd-Frank changes that took affect on the 14th which lowers the borrower's DTI from 45%-43%.

Unless the new owners try to refinance before the mechanics lien expired it wouldn't affect them much.

So I'll point out that it's one thing to know a question that you want answered, but it's totally different to be exposed to something you'd never thought of but that will affect you as a local investor.  

The wrap around the current lien from the seller to you is not affected by Dodd-Frank (since you are not going to live in the property) but the wrap from you to the end buyer would need to comply with Dodd-Frank assuming the end buyer is an owner occupant.

But if it is in decent shape and is only distressed because the person is struggling to make their mortgage or what not, the way you find the deal shouldn't affect the financing.

When the market is being driven by short term investors looking for big appreciation gains in a short time period, then the market can become artificially inflated, with the short term investors just selling to other short term investors in a nasty repeating cycle that drives up the price of real estate.

Granted I believe it was pertaining to crowd-funding using non-accredited investors when the law comes into affect this year (supposedly).