Look up: Notice of Default Purchase Agreement.

My home is not in default.

Changing your underwriting with higher accounting too much will push you out of the market by default; that is ok too if you don't need or have the itch to buy properties. 

The reasons for a house in good condition to sell to a cash buyer with room to flip could be:   relocation, got a job out of state and need to move and start immediately, divorce,  mortgage is in default, tax liens...One that is becoming more and more popular is "Don't deal with the stress and hassle of a traditional sell"  sellers will sell their home for less because of the convenience. 

Often this is a case of the homeowner being in default and leaving the house.

The lender's recourse is to foreclose for the default on the loan terms.

@Nelson Stokes http://search.gsccca.org/RealEstate/deedindex.asp You can search default notices online or by going down to the clerk's office.

Note, the IRS' default classification for a SMLLC is that it is disregarded from its owner whereas a MMLLC default entity classification is that of a partnership.

Your credit will take a hit but usually if you can cure a two month default in a reasonable time it should be fine.

But the downside would be that if we were to default on our loan the bank could come after our personal assets.