Account ClosedWater lien has no legal right to the property, if you pay for it as a 3rd party.

I do know that at every closing I attend the seller has to sign a document that is reported to the feds stating that they are not a foreign investor. 

So if you don' t read the condo documents you may purchase and find that you can't rent it out because there are too many rentals.Also, there is a risk of special assessments at underfunded condo complexes. 

If they are not licensed real estate agents, is there a way to legally incentivize them?

I have set it up where I will be responsible for the title policy as it is my understanding that this creates the need for only one title policy in a double close and not two (of course need to confirm with title co) during a process like this.My questions are this: -What to watch out for when doing this, are there are any legal issues with marketing a short sale like this?

Last thing you want from a moral & legal perspective is to put a new family in there, house gets shot up then it comes out you knew about it & didn't disclose.

For you that sounds like $15.FHA used to accept income driven payment plans with documentation but I'm pretty sure that they are now doing 1% as the payment for DTI in 2018.  

Whether you're legally liable or not, I think you'd still run the risk of being sued and having to spend money to defend yourself.  

@Logan Larochelle, if you can document you have lived in that home for 2 out of the 5 years immediately prior to its sale you can take the first $500K in profit tax free if your married

There was a guy that did a post the other day who was 21 and already saved $100k.A lot of the times (this is not legal or insurance advice), but your assets can be adequately protected via proper insurance on the property which would included a liability policy, and then with an additional umbrella policy.Keep in mind, transferring a property from your personal name to an LLC could trigger the loan's due on sales close.