Someone will lend at a 33% LTV.All of this said, it sounds like the Trustee would actually like to say invested somehow.Option 2, put the house in a trust or LLC and let the rent be divided amongst the grandchildren:-All grandchildren remain owners of the property and the monthly income of $1,500(minus expenses) is split amongst the 6 grandchildren.I will warn that option 2 is more likely to result in long-term drama and likely some anamosity among the family members. 

The pitfalls of these kind of scenarios is generally proving to the IRS that the payment was for actual work done.

Here you were eager to comment negatively on something you apparently don't know anything about but completely uninterested in actually learning about it.

Prime recreational land costs $$$ but burned, scarred and neglected land that is hard to access can be found for a reasonable price.

Does that sound like a reasonable goal? 

They are inside (above) backyard at 25% inside property line back fence.Personally I would not buy it to stay permanently as primary (don't mind to stay year or two as tenant) but it is for investment and I can get some discount for this reason.

Virtually every lease has a clause in it about reasonable access by the landlord or others.

It is my understanding that if you enter into the lease knowing of the foreclosure and placing a tenant anyway, then the lease is essentially deemed invalid as you and the tenant knew that it was a matter of time before they were evicted.Also there is an assignment of rents in residential mortgages as well, and doing this may open you up to a lawsuit by the mortgage holder since you essentially stole potential rent from them.And finally if the plan is actually to buy an HOA lien and wait until a foreclosure, I think that falls under unethical practices and would never do that, or encourage anyone else to either.

Prime recreational land costs $$$ but burned, scarred and neglected land that is hard to access can be found for a reasonable price.

In terms of actual areas in the bay, do folks recommend one of the following:South Bay ; East Bay ; TriValley or SFOr would you recommend sitting on the sidelines, wait and watch, and do a HYSA/CD to see how/where the market heads ?