Depending on the individual and company adjusting the loss, that could end up being very little.  

Like @Dion DePaoli said you should be able to get a credit report from the seller of the note, assuming it's not an individual investor who isn't set up to pull credit reports and has held on to the note for some time now (meaning any credit report they've received before they owned the note would be outdated).If your only concern though is the status of the first, then ask the seller who the first is held by.

I post their properties on my Facebook page and advertise them to individuals and real estate investment groups for a commission.

I had suggested that we all use the same property manager and at least give the street the appearance of a cohesive complex, rather than 13 individual buildings.

The Safe Act and individual state requirements, as stipulated by Dodd-Frank, all make the issue very complicated. 

Everyone has their own niche, rules/business plan that is their key to success.Another great resource is individual signatures.

We know a lot of people who bought single family investments and rented out the rooms.Beyond the podcast, blog posts, and forums, individual posters signature are also a great source of information.

., is now  NOT in the POSITION  to QUALIFY for a new MORTGAGE on a new house he can move into.I would appreciate some honest feed back on this issue.I have spoken to 2 competent individuals on this forum who teach and do lease option deals .One says you CANNOT DO IT ,then the 2nd individual  says IT DEPENDS  on your mortgage broker,your seller CAN DO IT  and many times you can help your seller get a mortgage on a new house after he leases out his old house.

., is now NOT in the POSITION to QUALIFY for a new MORTGAGE on a new house he can move into.I would appreciate some honest feed back on this issue.I have spoken to 2 competent individuals on this forum who teach and do lease option deals .One says you CANNOT DO IT ,then the 2nd individual says IT DEPENDS on your mortgage broker,your seller CAN DO IT and many times you can help your seller get a mortgage on a new house after he leases out his old house.

Everyone has their own niche, rules/business plan that is their key to success.Another great resource is individual signatures.