Legality of a Business Scenario

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Hello all!

I am looking to expand on a business. I am interested in bailing out homeowners in foreclosure in my Long Island New York area, and arranging an agreement where I become the homeowner's new lien-holder, with more favorable terms. It would be beneficial for those who cannot refinance at the moment, but still offering me potential profit, such as having equity should the homeowner default. I wanted to know if this is legal, or if I had to become registered with the State Banking Department, etc. Before I ask my attorney, what are your thoughts?