Just the way you communicate with a borrower is governed by laws.Foreclosure is complicated and a long and costly process.Real estate finance is very complex.Reliable valuations cannot be derived from the Internet.Finance laws are very complex.

@Ned Carey made several good points.You can look at REI like the used car business to try to solve the seller's problem, that is buy cheap as in the "car auction", ORyou can learn all the techniques that work well, like sub2, cfd, wrap, lease option, straight option, etc.You do not need cash to buy/control houses, just a flexible seller and give them choices that benefit them.You do need to be able to present viable solutions to the seller in person, so you need to avoid agents - MLS, and market direct mail - Craigslist for deals direct to the seller.

BTW, unfinished homes are issues for lenders too, so borrowering money against this also just became more complicated.

We also send things to our attorney to do himself if it's a little complicated.

As the AT&T ads say "its not complicated."

Typically, secured debt (mortgage) survives death of debtor.That's an oversimplification and there are exceptions, as well as local State laws which can further complicate the question.However, if the question has to do with buying a fire-damaged house from the owner of record or estate, finding equity could be tough.

Since you obviously do not have experisnce with this technique I would recommend learning a little about the basic concept then if you want to try it do a Wholesale Lease Option where you just assign the paperwork to the tenant buyer and seller and just get to keep the option deposit as a fee.

Ive learned techniques to get them engaged, but never a script.Best of luck to you - Chris

So you should know the remedies as lender to enforce your lien.There are a myriad of issues that could complicate a BK, foreclosure etc., which why it is essential that your the language written in the promissory note and other documents be written clearly & correctly.It would be unwise to assume too much.

You could also look at the paperwork for the purchase closing and go back to the lawyer who handled it.You probably have a simpler situation if it was a single member LLC but the situation could become complicated by a multi-member LLC or any changes in legal status (marriage/divorce) of the member even for a single member LLC.