@Scott Mac Loan this man a pair...

I am currently reading the book on Estimating Rehab costs by J.Scott and would like to pair it up with an actual project.

As i was eager at the time and not as knowledged as i am now i didn't do the proper investigating to notice the homes heating source was a single unit oil based furnace (thermostat being located on the first floor with the tenant).

But to be clear.....if the LOC mtg was recorded After the foreclosing mtg recording, there is no need for a subordination clause...the LOC/2nd recorded mtg is automatically junior and gets wiped out with a foreclosure by the first, assuming they were properly named/served. 

I advised the lender, that I wanted my client to be properly prepared.

Then, if properly handled, the LLC limits the assets the claimant can go after.

@Russell GronskyI’m still new to this, but it sounds like if the mom didn’t go through the proper steps to move out then she’s still in the hook for the rent.

Here’s a little mor explanation  of that thought:The great thing about life insurance is there’s little tax implication to your beneficiaries and if properly structured there’s little legal encumbrance around obtaining the funds. 

If not what would be the proper situation here in terms of tax filing? 

They're fundamental to what makes you stronger, but only if you apply them consistently and properly.