Isn't he accruing late fees paying late?

Interest accrues on the balance.

If the end-borrower's deal closes, the end-borrower effectively finances interest accrued by the transactional borrower (aka current owner of the house).

Of that number, $2,006 is the original taxes that were due, and $2,735.72 is accrued interest.The county then pays the investor the full $32,735.72.

If you are considering condos but concerned about special assessments, keep in mind that those special assessments are usually due to inadequate reserves being accrued over the time prior to that assessment hitting.

Length of loanAre interest payments made monthly or accrued?

You still have to pay a lawyer for the foreclosure process and you have to pay all the back taxes and municipal fees that will accrue while the property is going through the foreclosure process.

Building violations get places on properties all the time and sometimes they accrue at 75 to 100 per day. 

Real Estate is a unique investment because any loses accrued are solely contributed to yourself, especially in SFH. 

Interest charges on a HELOC usually begin to accrue from the date the charges post to your account so you won't be able to avoid accruing interest by switching the balance back and forth between two HELOCs.