Cha Yang,This might be extreme, but maybe cover it with a super-large tarp such that it's not obvious you're concealing a dumpster.

I'm extremely appreciative.  

To be frank, I think what you are missing is the fact that the strategy you are trying is an extremely low probability pursuit in today's market.  

The other one that fell through had a judgement filed against the homeowner right after we did the quit claim with the mortgagor and were about to close and redeem the property from the person that bought it at the sheriff sale.That judgement terminated the mortgagor's (and therefore our) ability to redeem that property.The response rate on our marketing campaigns has been extremely low; south of 1%, in fact.Our campaigns include door knocking, leaving notes on doors, as well as mailing the property and new addresses of the owners (when applicable).  

If you are planning to rehab to resell and the money will only be tied up a short time, cash is a great idea or you could look into a hard money loan, however those can be extremely expensive.

For an example of what I'm talking about, this guy has some great videos showing him making actual phone calls to real motivated sellers: The tutorials, books and podcast are amazing, and if you guys have already done these kind of videos/blogs let me know... but I think videos/blogs chronicling every detail of real deals as they're in progress from start to finish that you guys are working on would be extremely educational.It would be so awesome to watch a series of videos/podcasts or a series of articles/blogs where Josh or Brandon are detailing every step of the process in a deal that they're currently working on.

It's extremely unlikely another agent would have any idea what you're offering and trying to explain that to their client and negotiate on their behalf would be a nightmare.

For the duration of the lease-option the property stays in the sellers name, so it should not trigger a "due on sale" for the mortgage, until the option is exercised. 

Sellers do not want to go through the time, effort and exposure, or tie up their property, in a transaction that has no chance to close.There are those extremely rare cases, that become real estate legend, in which a buyer with little capital, and no borrowing capacity, is successful in convincing a seller of a large, expensive property to take him seriously and is able to perform a high wire act of raising capital from a variety of unconventional sources and actually complete the purchase.  

It would most likely trigger the due on sale clause.A scenario that may work though is if the amount remaining on their mortgage is less than what you are willing to offer as a down payment or they were willing to pony up the difference.