@Ti HonIf you win it at auction you would end up owning the property but typically the first will want to get paid off and will force you to pay it off as they know you already dumped money in it to win the auction so they can then foreclose as well if they wantCalifornia to foreclose is non judicial so it’s quick and inexpensive

Kind of a JV but a little less formal.

After talking with my lawyer this week Ill decide whenever or not to write the lender a formal letter.

I like non judicial states the best.

All of the benefits of a partnership with the liability protection of an entity....assuming you observe the formalities required of the entity.Check out this overview as well: http://www.biggerpockets.com/forums/12/topics/76052

So, I figured I was too smart to go to continue my formal education.

A FORMAL partnership is best.

Is there anything we have to do to formally "realize" these losses on the bad debt for 2103.

So what I am wondering is if a Judicial foreclosure happens and lets say the house is worth $200k.

Investing your personal money along with your 401k is a different matter...Assumptions;You have the financial ability to acquire a given property but your goal is also to increase the value of your 401k.You invest x% in a property and your 401k invests x% and this is formalized via the Tenants in Common legal agreement in your 401k.If financing via a seller carry back note is necessary then there would be two separate notes.