The terms are attractive, but Uncle Sam will force imputed  interest to be paid as far as I know.If a good rental, find a buy and holder and wholesale it, Joe!

Food for thought.

Food for thought.

They both typically cost about $20 bucks to attend, but that money goes directly to pay for the venue & food / drinks. 

Moving it down the street and plopping it down on your plot might be physically problematic if your existing home is in the way, and there are a zillion other things to overcome, and it overall still might make sense, but food for thought. 

Part 2 of this question is from what I understand, junior liens are expunged when the first lien position holder is foreclosing.

I'd review other applicants and put a job holder in front of her. 

If laws were violated those non-compliant issues remain with the borrower and any new note holder assumes those infractions or non-compliance.In other words, Joe Broker sells you a note that was non-compliant, you buy it, things go south, you want to collect, Bob Borrower gets an attorney, you go to court, you lose, not just your note and collateral but you may also be subject to fines.Now, your recourse, go find Joe Broker, can you collect?

Doing what your gut tells you will likely propel you forward to do more, so while this may not always figure out firmly on paper, it does have value to be considered as well.My intention is NOT for you to reply with the answers to these questions, but rather, to provide food for thought.

Do not follow this advice blindly.I believe investment in vacation rentals or a few areas, like Old San Juan, Condado, Isla Verde, is safe.In my opinion, the Oversight Board is here to steady the financial ship and make sure the US debt holders get paid.