Additionally, the price point is still cheap enough to find the 1% rule and positive cash flow and there's amazing appreciation potential.

I sent you a message with an additional one.  

Loss of use is foryour additional expenses if you can not live there due to a covered claim (ie.

Letting someone out of the lease is not the same as nullifying that the lease ever occurred; it is just an agreement that you won't go after any additional months of future rents that would otherwise be owed.

I’d recommend a consultation with an attorney specializing in these, in addition to an accountant.

Of course unless your buying defaulted notes at the get go then again as Chris mentioned this type of fee should be handled up front.. and if it new origination your making and then they go bad.. in your foreclosures you can charge the borrower these fee's when they cure or add it to you opening bid and when someone buys it at the court house you get repaid..

Looking at this as a strategic addition to my portfolio.

Additionally, I would suggest you run some financial calculations such as cash on cash return as well as any appreciation from the asset if/when you sell.

This practice also frees up more money for lenders to use to fund additional mortgages.In "non-conforming loan" world, anything goes.

These are professionals with additional training and a stricter code of ethics.