An umbrella insurance policy is generally the better financial choice for most small portfolio holders.

My question is this: can we operate our own trust account for the security deposits without a broker since we are owned and managed independently, or do we need to hire a broker or other escrow holder to operate a trust account for us?

If you buy the home and sell as owner finance, you should record the buyer as the new home owner on the SOL and you as the lien holder.

There are two lien holders.

and the holder is in CA, any modification is the same as a new extension of credit, as if you were making a new loan, which you would be doing.

Loans are assigned more often than not, so it might be more difficult to track down the holder to get authorization.

It's most like the old double closing A-B, B-C in RE, but B can retain part of the rights of the note holder.

I would do it now but I'm a lien holder so I have to wait 6 months til I can file ejectment.

They usually don't apply to banks, but as an individual holder they may apply to you and if such privately held.....don't know.

If you have a new loan and high ltv, there isn't much to protect in my layman's opinion because if the property was ever forced to be sold, the Note holder has the first lien position.