Many sellers have backed out at closing (legally bound or not) once they see the money they could have made on their own.

Let’s do the math now…… financing a property that cost $5 Million dollars with 20% down would require you to put down $1,000,000 and you would still have to add in legal fees and closing costs.

Being an investor herself and keen business person--spots this as the great investment opportunity that it is, promply pulls a sales contract from her brief case, writes up a legal offer to purchase the house for a hundred and seven thousand dollars, with a 7% commission being paid to her as the listing agent at closing.

I wouldn't be cheap when it comes to the legal side of a partnership agreement.You can probably use some standard partner agreement from Staples if you're looking to go low end, though.

Where do you get the contracts and how do you know if they legal?

Here (Chicago) you must legally provide a fridge.

Anyways here is the linkhttp://www.dca.ca.gov/legal/landlordbook/2004_companion.pdf.

I have also spent a bunch of money sending out letters and getting the legal papers sent to my home so I may be the first to get the letters to these homeowners.

This will list every legality and tell you what your rights are, what his rights are and empower you greatly.

With no disrespect to Nate in my reply...I am an expert in this field (I stress TEXAS is my area I claim expert status in) and there is a BIG difference between a "pre" foreclosure and a "Foreclosure" as you worded it.The term Foreclosure is the legal process a lender must take to legally repo a house.