Need advice on preforeclosure deal

[Greg Lovern]

A homeowner whose foreclosure auction date is this Feb 8th has agreed to sell to me Sub2. I am able to pay the reinstatement amount plus the monthly loan payments. The lender has agreed to accept the reinstatement amount to stop foreclosure up through the day before, Feb 7th. My plan is to resell quickly -- this is a preforeclosure flip.

But the homeowner had already brought in a real estate agent, and she is trying to talk me out of doing it this way though I've agreed to hire her as the seller's agent when I resell soon, and offered to sign with her now. She actually doesn't think Sub2 is really a thing -- she doesn't think it's possible to legally buy a property without paying off in full all loans secured by the property. But she came up with an interesting alternative suggestion that I wanted to run by the investors here.

Her idea is that I sign a contract with the homeowner to do the following:

 -- He quit-claims to himself and me, making us co-owners of the title. He is currently sole owner of the title.

-- I pay the reinstatement amount. 

-- We agree to sell the house (together) quickly.

-- He agrees in the contract that when the house is sold, I keep a fixed dollar amount in addition to being reimbursed for my reinstatement payment.

This has the advantage of only having one set of closing costs, and it's simpler. But I have these concerns:

1) What happens if he changes his mind and decides he doesn't want to sell? As 50% co-owner of the title, can I force the sale on my own?

2) Would this be legally defined as a loan, and so be subject to laws regulating loans, such as maximum allowed effective annual interest rate?

3) Are there any legal issues around doing it this way?

4) Quit-claim notices usually say that the consideration given in exchange for getting part ownership is $10, or $1, or love & affection. In this case, it seems to me it should say that the consideration is the $45,400.53 reinstatement amount. Is there any problem with that?