So yes, the trustee controls the security instruments final outcome but the dirt itself was deeded away and the fraudulent conveyance thing is a stretch in the real world because presumably there was no fraud.I agree in principal with what you're saying but it's not with a wave of a wand  this mans deed can be rendered null and void because some guy filed BK.

@Dmitriy Fomichenkois the principal.

We currently rent in CA, but want to buy a place so that we begin to pay down principal, accrue tax benefits, and lock in a monthly housing payment in a rising rental market. 

Also, since the money was used to improve the property, can we continue to expense the interest if we don't have to pay the principal balance back even though it will no longer be our primary res?

I could live there for a few years on my own or with a tenant/roommate and pay down the principal, move out and then start renting out the entire unit as a rental with yearly tenants on a lease or on Airbnb (If the condo board allows it.

So on a $100k property that you owe $65k they can lend you another $10k just on that property but you are may have appraisal fees, title insurance, loan fees and other miscellaneous fees that could add up to anywhere between $1500 and $3500.  

Some partners may just want to loan you the money and receive interest only payments monthly or principal and interest monthly. 

I could acquire this home for 34k which is what is owed.

Today the principal is bankrupt and in semi hiding.

Most are not as competent as I think they should be, but at least they have some relevant training and have passed exams and are under the supervision of a principal broker.