With your good credit you can get in to a home for just a few % down.

I could be misunderstanding how this deal was structured, but wouldn't the seller who is on the underlying mortgage have an incentive not to let it go into foreclosure since their credit is at stake?

In most of those cases, their broker took a high fee and the investor didn't end up with a great deal.Here are a couple of things that are a tipoff you are not working with a broker with your interests at heart (1) they want to pull your credit before having a conversation, or (2) they send you a long list of things you need to provide them before learning about you and your deal.The conversation should start with why you are interested in REI, then understanding your strategy to get there.

You may not collect anything, but it will sit on his credit report and prevent him from getting a car loan, home loan, or scamming another landlord.

That does not build confidence in investing in an area no matter how many friendly seals bark at you.Do L.A. and California lose carbon credits for all the noxious smoke?

Typically Conventional will end 42% of DTI and FHA can get up to 51% DTI (and based on your credit score I think you should stretch to that 51%) Just a few things to start thinking about as you are working through the process. 

From analyzing deals to exploring creative financing, I’m realizing that success in this business is about persistence, relationships, and constantly improving. 

CA there is NO possibility of a deficiency judgement on a purchase money owner occ loan.. borrower can walk and the worse that happens is their credit will have a foreclosure if the bank goes that route or a deed in lu. 

Why set a 600 credit score if it's negotiable?

So act quickly, do as the others are saying and screen him according to your standard criteria. credit, references, eviction history, etc.