The problem has been taht a large majority of loan mod companies (95%+ in my book) are frauds and scams, looking only to take money from unsuspecting homeowners.

Having managed my own properties for many years it is my opinion that a person without experience would be a hazard to an unsuspecting property owner.

Phil,Maybe you missed the main question, or maybe I didn't explain what I was looking for correctly, either way, I hope my reply clears up any confusion.I believe that all of those areas I mentioned are terrible places to invest and that the wholesalers who are pushing those areas both in the past and currently are taking advantage of unsuspecting novice investors.

However, since it was posted in a public way, perhaps you felt obligated in some way to correct any inaccuracies so as to protect the unsuspecting public who may be unduly influenced by my poorly worded post.  

Just keep enough to cover the unsuspected cost of maintenance.

@Shawn Casinader  as you so aptly point out... buy Detroit for next to nothing  IE 1 to 5k per home put in 10 to 15k ( lip stick) and sell to unsuspecting out of state investor who thinks they just hit the cash flow gold nugget...

You are using a lease option tool to con or trick unsuspecting tenant buyers out of many thousands of dollars. 

Seen them try to sell to the tenant, then turn around and try to sell to an unsuspecting buyer. 

Most junior lien holders that initiate foreclosure, do it for one of two purposes. 1) because they have ran the numbers and know that if it reverts back to them, there is sufficient equity to pay off the first and then sell it on the open market to recover their expenditures. 2) (My favorite) is to catch unsuspecting bidders asleep at the wheel, that will bid, and then take them out (junior lien holder) and then be faced with the senior.

If it's in active foreclosure, you may be subject to some pretty stiff rules about equity stripping with an unsuspecting homeowner.