The creation of a subordinate lien, any conveyance under threat or order of condemnation, any deed solely between buyers, or the passage of title by reason of the death of a buyer or by operation of law will not entitle Seller to exercise the remedies provided in this paragraph.NOTE: Under (a) or (b), Buyer's liability to pay the Note will continue unless Buyer obtains a release of liability from Seller.(2) TAX AND INSURANCE ESCROW: (check one box only)(a)Escrow Not Required: Buyer shall furnish Seller, before each year's ad valorem taxes become delinquent, evidence that all ad valorem taxes on the Property have been paid.

Last year a lot of properties were removed from the auction in the 2 weeks or so between the property list being released and the bidding opening, I assume those were due to 2011 taxes being made good.

Maybe think about taking contractor #1 to court.Did you get (legal under local law) lien releases from both contractors and their subs and suppliers before releasing partial finish draw pay?

Depending on how the owner financing was originally structured, the buyer will get title to the property for the first time or the seller will execute a Satisfaction of Mortgage indicating the mortgage has been paid in full and releasing the lien on the property.Owner Financing ExampleSay, for example, a homebuyer wants to purchase a historic home that doesn’t qualify for a conventional mortgage due to its age and condition.

See #5.5) You need someone local and reliable that can visit the project weekly or as needed, to document:- What's been done, not done- Has it been done right/acceptably- Can meet contractor there to discuss issues- Wil send you pics/video, etc. consistently to document everything- Can let you know when to release additional funds- Can meet city inspectors as neededThe best person for this would be a GC. 2nd best would be a PMC. 3rd RE agent.What's most important is finding people that can assist with covering the above issues.

When I sell, the payoff docs come to my VP (wife) and we get it released.   

Once the city has verified that the violations have been corrected, the funds are then released. 

People are celebrating this but I see it limiting the rental supply .

Here is why.Let's say (oversimplified, of course) that your PM collected $12,000 in rent on your behalf, paid $8,000 in expenses, held back $1,000 for their services, and released the remaining $3,000 to you.Whether they reported on 1099 $12,000, $4,000 or $3,000 - does not change how YOU report it on the tax return:- $12k rent        minus- $8k expenses (categorized, of course)- $1k management fees- $xx additional expenses paid directly by you- $yy depreciationOnce again, the PM should report $12,000.

I believe that is public information and they release information about the calls and what occurred.