will bank allow this?

[Scott R.]

So im in CA with a ton of foreclosures, no cash of my own which is fine generally, but issue is most people are upside down here so they cant owner finance out. I started wonder if a bank will do this or not.

1 Find investor with cash (anyone know of a partner agreement or anything by the way?)
2 Find REO and get a great price (easy here)
3 flip the REO to new buyer so i can cash out the investor and get my cash.

here is the problem- i dont have time to wait with it in the market, and most people have horrible credit or bad enough credit to where a bank wont loan them much. These would be my buyers. Get the property for $70k + $5k in repairs. Find new owner (or have one already) and have them qualify at a bank for whatever they can. worth $130k sell for $125k. But their bank will only allow them $90k because they dont have the best credit. So i let them buy at 125k with $10K down leaving $115K and i owner finance the last $25K.

What position would the bank be in? I mean can i go in first since it will all be at the same time? or will the bank loan less at that point or maybe not do the deal?

if i was in second that would mean that the owner would pay the bank and me seperate? or do they pay a title company who pays me? This is the only way i can think of cashout out my investor to reuse the money again. If i wait around for someone with credit around here i might have an issue since the new rule is 10% of the credit card limit can only be used before it hurts your score so its putting people in a position where they cant qualify as easy. And would the bank do this bepending on the LTV as a TOTAL including my loan?