These homes sell on supply and demand, and in a state where it can take ten years to get a subdivision approved, and a SFR building permit can cost $100K, supply is a big problem.Buying at 3-5% rental yields doesn't work.

As far as their mortgage is concerned, will the banks permit the homeowner to tack on those defaulting months to the back end of their mortgage term so long as payments resume in full going forward?

With just a contract to purcahse you can't encumer the property and likely won't get permits unless the land is in your name or the owner subordinates for the build.

Make sure you get a copy of their liability with you named as the additional insured.Make sure that the contractor is going to pull the necessary permits.

If it isn't in writing, it doesn't mean ANYTHING.5) Finally, if you're changing footers then you probably need a permit.

When figuring costs, here are some things to consider:- Many jurisdictions will require permits to demo a house- If permits are required, a Demo Survey will likely be required (and other surveys/tests)- If the houses are old, you may need an asbestos survey- If there is asbestos, you'll need to pay a remediator to remove- You'll need to pay for labor to demo as well as haul-away and dump feesYou can probably find a company that will do all this turn-key for you for not too much more than what you'd pay to piecemeal it.

Also, I know you can obtain proof of funds letters online for short sale transactions, but for a newcomer trying to also get into REOs, do you know of any companies or hard money lenders that will fund rehabs?

Then a building permit at 15K is picked up, they may add the 15K to the value by a legal requirement.

Only the lender has the power to agree to a 3rd party acquiring title to the property and permitting loan assumption.I've acquired countless properties from estates 'subject to' the existing mortgage(s) but have only bothered to formally assume one..

In our case, Atlanta requires a sewer plug, rodent letter, and Arborist permission before they'll issue a demo permit.