It's a simple solution to a distressed homeownwer, but it seems like there isnt another way unless they are willing to do 'sub to'.

I've labeled $5k as a good base for reserves.

There are gurus that teach a 'system' or two;  not being a guru myself, I look to help craft a solution to a particular seller's problem.Keep running the scenarios in your head and on paper to keep them in sharp focus. 

Solution: Only close with an experienced closing attorney and always make the borrower get the lender's title insurance.Your collateral (the property) may be worth less than you think - OK, let's assume you definitely are in first position.

Hi @JR Lizarraga, I'd recommend doing a free trial of each solution, and creating a list with each, and then comparing the results.

A buddy of mine in tech was telling me how he was playing with the idea of creating a solution to make the closing process even faster and reduce closing fees.

Did you ever find a solution that worked for you?

She can at least tell you how to approach this situation to see if there is a workable solution. 

Not that the other strategies don't, but yours seems like a logical solution to a number of challenges, for all parties involved in the transaction. 

Regardless, passing off a good deal to someone in your network is a good way of building on a relationship- and finding a solution for everyone involved.