Your remedies are to foreclose for a performance default (instead of a payment default) or reformation. 

But then I realized that if the buyer defaulted, the costs of foreclosure would easily turn this into a investment into a loss. 

At present I have 7 loans outstanding - 2 are in default, 2 are late 60 days, and 3 are current.  

The huge plus is by paying the LOCdown, you pays less interest and therefore by default you increase you income.

Lenders don't just take payments, lower balances and then default a borrower.

@April White Please don't take this the wrong way, but the fact you have an LLC in Texas yet you started out by saying you're incorporated and need to file a Form 1120 shows me you need a CPA.1) LLCs are not corporations, so you aren't incorporated.2) LLCs, by default either (i) file a partnership return (Form 1065 NOT Form 1120), if they have 2 or more partners, or (ii) don't even file a separate return if they have only 1 owners, as they are what's called a disregarded entity that files it's information on the personal tax return of the sole owner. 

IE rough areas .. with high crime and a lot of turn over with very few homes actually selling to homeowners.For the most part Canada be it Alberta or BC  simply did not crash.. like the US.. and defaults are minimal in those provinces.. so I just dont think there is near the distressed asset opportunities..I think the only way to really create value there is forced appreciation..

If you default in your payments, the Seller can't just take the property back, instead they have to foreclose on the property to take it back from you.

Essentially, they want to know you present a low risk of default to them, so they’ll ask for seemingly arbitrary items like this.

@Tyler Sterns Not exactly....in those counties is customary for the buyer to pay for title insurance, as opposed to all other counties the seller typically pays for title insurance.....but that is a very small part of “closing costs”.For an fha, closing costs including 15 months or so of property taxes and insurance, the upfront MIP fee, closing, recording, etc will run 5-6% of the loan amount, typically quite a bit more than the “3.5% down payment”.These are default provisions in the FL FARBAR purchase contract.