Thank you everyone...I understand that the best approach is to have a restriction on the lease.

In my state, an agent can approach ANYONE on your behalf, as long as you are working in an agent/client relationship.

If suppose you sell your home a month after it goes off the (mls) market your agent could feasibly argue that their advertising and work has brought you that buyer...whether it is true or not.

Hmmm might need to change my approach.

I really like Ramsey, but his approach is a bit on the conservative side for my age and income level.

Hi Ryan,thanks for the helpful advice. that is pretty much what I thought. the reason I brought up the possibility of buying the second trust at a discount is to better position myself vis a vis the "tenant" who has put so much money into the house and really wants to buy it.that is the most positive thing here for me: someone else wants the house. if I hold the second trust and the bidding goes up above the first trust, penalty, interests and costs, wouldn't I be in a reasonable position with respect to the other bidder(s)?

The vast majority of the time, it's brought on by poor, bad or just dumb choices.It's easy to sit and say, "I feel so bad people are losing their houses."

I don't like the HELOC approach for the following reasons:a.

After all, it's very inexpensive compared to potential penalties (not that I know what they are...).One of the things that brought me into RE in the first place was some of the stuff I read about birddogging.

You should approach every transaction with the mindset that you're trying to develop a win-win solution for all parties.