Some things to consider if only doing a house though is the cost and complications.

I remember seeing the $25K bill for the normal delivery of my first son; I can only imagine the cost of prolonged treatment for a complicated disease.

I would also be in favor of all seller financed notes to be foreclosed by judicial process.

Before being on the commercial side I was doing mainly short sales on the residential side about 4 years ago.The real estate commission and many others didn't even know what they were.In a appreciating market lenders won't do short sales usually as by the time it forecloses the asset has improved in price to cover more of the lender costs.I will tell you in short sales you can't make sense out of non-sense.I have had a short sale listing where we received 10 offers at 105k.An out of county agent did the BPO for the bank.Comps used were horrible.Bank rejected all the offers and went to foreclosure 2 months later.Re-listed as REO in month 3 and sold for 69,000.No sense but whatever.Sometimes the investors who own the loan think they have a diamond and it turns out to be a lemon but takes awhile for them to see it.2 years is not uncommon to hold up.Many times the investor would prefer to do a workout and put back payments on the loan then to take a big loss.Example rather than foreclosing and taking a big hit investor opts to reduce the home owners interest rate down to say 3% and then roll in the past due fees.So loan at 8% at 200k now you reduce to 3% and roll in 40k in back fees plus the servicer still makes fees off of the loan.Some states are very expensive to foreclose in as they use the judicial process.Also many lenders were using MERS to record documents and attorneys for the home owners can sue to show the foreclosing party doesn't have a legal right to the property.If a home owner knows their rights they can drag it out for years and years.A lender defending a lawsuit in court can costs hundreds of thousands of dollars over time.A good publication to read is www.mortgageservicingnews.com

Unfortunately our judicial system has taught these idiots that they should be protected from themselves.

As you gain experience you can tackle more creative ventures but there's no reason to complicate the model.

Taking title under an event of default is not a sale, it is a collateral interest in the property only to the extent of the amount of the lien for a note and depending on state laws, obtaining title by a foreclosure action, either a judicial or non-judicial action.

So there was a judicial foreclosure with redemption rights?

This complicates matter a bit.

Rounding and estimating are a big part though as things get more complicated!