Also, if there is debt forgiveness as part of the equation, the paper loss from that could potentially offset some or all of the the "gain" from the mod. 

Regarding paper work, get the owner to sign a purchase contract with you, you then have your buyer sign an assignment contract.

How do you decide when to toss the sheets and towels or reuse them?

http://www.nber.org/papers/w12331.  

Most of the major funding companies I am aware of, who make a business out of buying owner finance paper, use partials on a large percentage of their purchases.

Have the title co. get the necessary documents and handle the paper work side of things.

Not great returns on paper, but that house will rent out quickly each and every time because of the area.

In my opinion, increasing the size of tenant's space on paper after they have previously been occupying the space will upset them regardless of if they pay the same per sq. ft. rental rate.

My knowledge is based on HML , which I have 30 years experience at.But buying existing paper on owner occ mortgages is whole nother kettle of fish.

That's exhausting.Now the 2 Duplexes that we have gone to contract on is demanding Paper work and Paper work that should cover buying the Empire State Building and that is driving us crazy and they are still demanding more, they even want to know the ages of the children, and where every cent we are putting down comes from and On and On.