The worst scenario you'd want to be in is having to pay out of pocket or take profit from another property to overcompensate for losses on a commercial complex.

They lose points if they have over $2K in debt, and their credit fitness score is graded on a sliding scale.From what you've shared, these applicants are not overly concerned about their credit, so they will not be overly concerned with any financial losses you try to push back to them.  

I need some input on this multi family opportunity deal below.Asking Price $560,000Income $8914.00Expenses Total $3,360Advertising $0Insurance $487Management $354Taxes $285Utilities $530Telephone $195Supplies $190repairs $395Pest Control $80Trash $140Lawn $95Flood $ 07% vacancy Loss $609Net Income $5,729

Yea, they tag you for profits, but not losses.

The bank is letting the property go at a loss.  

A borrower need not be granted (or protected from) a right to redeem if the action does potentially create a loss of equity.So to be clear a NOD is not a foreclosure action.  

The owner was being sued for an injury on one of his properties and his misfortune benefitted us, but I would truly not wish the injury and the loss of property that resulted from it, on anyone.

He was shocked that I'm not reducing my tax burden each year by maximizing my losses.

It's a good thing for the public these contracts have come under various new regulations to curb the predatory types.Option contracts are under some new changes as well, not understanding these contracts can cause a taxation nightmare, mess over a seller and as you asked, the results can be harsh, especially on the operator who got a seller in a financial loss. 

If you are accumulating unused tax losses (passive or active) they will eventually come back to you in the form of a net operation loss carryforward on a subsequent year taxes, or when you sell the property.