A senior secured loan gives a lender a structural advantage over “mezzanine” or subordinated debt because senior debt is the first to be paid; it has top place in the event of liquidation.

@Grant Rothenburger, I don't think it's necessarily a lack of deals, but that everyone mailing to the same Absentee Owners.Investors in overcrowded markets need to look at alternatives like Seniors who have owned their home for 20+ years or Homeowners with low Financial Stability Scores (FSS).There's even a new list where you can mail to the children of the elderly homeowner - since they are the influencers.

For some reasons, the property will go to auction, and lender will pay tax plus all the interest and penalty in redemption period to get back the property. if after redemption, no any one pay, you can ready for foreclose process, and yes, you will own it free and clear except other super senior lien (like IRS...)AND Yes, you always can try to contact the owner to make a deal.

Don't jump without looking of course, rather find a senior enlisted or an O you trust within your chain that has bought few homes with VA loans and ask them for some guidance. 

In my scenario above, I directly went talking to a senior VP.

Some exceptions are seniors who do not need more space or college town with students.Rest of population tends to outgrow the space quickly. 

The market can remain irrational longer than you can remain solvent." this was a very very real scenario that caught many a developer in a pickle or syndicator or what have you.Ken Harter in Oregon was the largest player in the senior housing space he needed to refi in 09 about 1b or more in loans that had the 5 year calls... 

When I did my best to explain I couldn't make an offer he went on a rampage... he was screaming, yelling, telling me I have no respect for seniors, I'm just like all the "others", he even rambled something incoherent about Hillary Clinton... at the end of his screaming he demanded I tell him what I would buy it for, I gave him a stupid low price and he hung up.

Perhaps looking at both Absentee and Seniors with 20+ year ownership.

However, even if this multifamily exemption applies to you, your rental advertising must still comply with the Act.Other exemptions include the rental of a single room in a home, qualified senior housing, and housing operated by religious or private organizations, if certain requirements are met.https://tinyurl.com/y92fxzsrHope this helps: