So the risk to the Note holder is having to give back all monies received and depending on the state there could be treble damages.Along with the fact they are taking a house they bough that is a wreck  they paid 20k for it in the example Joe gave on line here.. then sold it to some unsuspecting CA person for 50k or so according to Joe.. then sold it on contract without ever touching it ( according to Joe ) to the Hispanic buyer borrower for 79k.. .its one thing to buy low and sell retial once your rehab but to sell a 20k house as is for 79k and never touch it that is were it gets a little dicy according to many who posted.

Some owners ditch properties that they can't sell at tax sale, dumping them on an unsuspecting buyer, who has no recourse.It can be good, but it is work and it is like looking for a needle in the haystack.

There again, an underlying agenda you can call it.That all said, I am far from a guru pitching crap to unsuspecting newbies fleecing them of their cash knowing they have little to no chance of success due to the program.

@Mark Marinaccio   well as you can see in those types of undesirable areas the owners are dying to unload them on someone who does not know the market... the sad part is when homes like these get bought then sold to unsuspecting investor who don't know the difference.At least your triaging them... anytime I think you send out 600 letters and get 40 responses you know you have hit the a very rough part of town were no one wants to invest or live.

And invalid the offer with the report have un suspected big things require costly repair?

Just trying to keep the facts straight for the unsuspecting forum readers coming here trying to get some sage advice......

Homeowners don't buy 30k houses that's the hood who wants to buy in the HOOD to live there... not many it strictly a D class rental game for those with the intestinal fortitude to make those properties work or those that sell them to unsuspecting out of state or country investors who end up losing all their money.

But if you do renegue, forget about being on good terms with that Seller ever again, unless they just like collecting deposits from unsuspecting Wholesalers - "hey, come back, give me another deposit for nothing in return"! 

The 0% is the hook for unsuspecting RE investors, especially new ones.

Keep in mind that there are lawyers out there trolling for unsuspecting landlords who make very minor mistakes.I rent single families with rent amounts between 1000-1700.