Loaning to cure a default. Need a 2nd set of eyes on this....

[Kevin Kim]

I'm going to loan a distressed homeowner 10k to cure his default. His current LTV is around 55% (1st and 2nd mtgs). I want to see if I'm on the right track....
1) I'm going to buy his home on a mirror wrap subject to the underlying mortgages plus the 10k new loan amount.
2) I will immediately sell the home back to him on a wrap equal to the existing loans, plus the 10k on a 12 month balloon. He is giving me $4000 down and I am charging him 10% apr on the 10k loan. His repayment schedule on the 10k is approx. $500/ mo. plus reselling the home with a 5k profit (back end). I wanted to avoid usery loan charges thus the profit on the back end.

We will be closing back to back with a title company using ILC's.
Am I on the right track?