So it is a matter of assuming more risk in terms of asset protection or not being able to get a HELOC for the next property....Thanks for your info. 

Many states do not recognize them, and they often offer less asset protection or more potential for piercing.

However, the makers will need some liability protection or the first incidents will cripple the entire industry.

It seems like it would be a waste trying to create in a different state unless you had some grander notions of asset protection or identity secrecy.

Once they've lost their bankruptcy protection (or "stay") they are essentially in pre-foreclosure status.

Many listing agreements have a protection or holdover period, which means that if the property sells to someone who was introduced to the property during the listing period, the agent is still entitled to their commission.

You don’t want to risk diluting that protection or worse, voiding that protection from the wrong changes.

You might contact a consumer protection or tenant advocacy group in your area.

Does an S-corp provide different legal protection or do anything else differently?

@Jeff Copeland:Much of your advice to David is sound, but I take issue with your suggestion that it is unethical to use conventional loans for financing properties that you ultimately place in an LLC for liability protection.