That won't be much skin off your nose but if it's an owner occupied financing arrangement they are taking a huge liability as even if there are exemptions there are still requirements to be met.

Thanks for your thoughts @Paul Jamgotch .The way I have to look at it is that I bring 3 pieces to the table:The ability to put an investment partnership together and make them moneyThe ability to handle the real estate transaction on the buy and sell, saving 6% of net at a minimumA contractor with skin in the game, who also owns a cabinet shop and handles many of the sub jobs personally.These investors see what a tremendous opportunity they have to multiply their return compared to their current vehicle.

While this was excellent news for us, it provides complications with obtaining traditional financing as she wants to be listed as a lien holder and no institution would finance me if the down payment isn't really a down payment, no skin in the game on my part so to speak.

They would be mad at me if I spent half that on bandit signs in Birmingham, lolJUST MY 2 CENTS BUT THERE'S MORE THAN ONE WAY TO SKIN A MEE-YOW

The other good news is that there is more than one way to skin a cat.

I would hope the court would see that if it ever came up.I have had a lawyer involved the entire time so he would be the one to draft up any paperwork that gets done.Thanks for the ideas, keep em coming if there is another way to skin this.

@Jerryll Noorden  cash out refi for someone who is brand new is going to be improbable any HML ( and I have been one for years) is not going to bite on this scenario.. you could just pocket the cash and walk. as a newbie as you self profess you will need skin in the game and probably 20% or more regarless of how good the deal is.. you may find a private lender who is not to swift just like the sellers are not to swift to leave such a huge margin on the table.. unless of course you just dealing with little old ladies who know no better or others who are not swift.I get it if the house is a hoarder house or major issues. so want to make sure the newbies following this thread don't get the idea they can do no money out of heir own pocket deals with HML becasue3 that simply is not the case.. and I would bet you will pay 4 points at least being new.. 2 points is generally for a experienced known borrower.did you close the ladie that would not get back to you and you have to drive two hours to see here?

I mostly agree with @Greg H, the exception, is that HUD does do pre list Auctions on Auction.com, and Hudson and Marshall, and possibly Homesearch, (havent been able to verify this one) but the process is totally different, you may or maynot be buying from HUD, but if no one buys at these auctions it gets added to HUD's inventory and listed on HUDhomestore. in any case, you need to prove your money, submit Ernest, and lose the ernest if you dont close, so yea, you have skin in the game.

They have skin in the game. 

Now, there's no turning back.I'm sure I'll become more active on the forums now that I've got some skin in the game, but I just wanted to share my excitement with the community.