I would have a free and clear Condo within 15 years plus a cash flow of Market rent (if I rent it out).I offer to keep a Quit Claim Deed in escrow if I default, say 60 days or more late, you get the property back.

You will have some legal issues if you enter into a sub2 deal with a homeowner who is in default on a mortgage, and you show no attempt to bring that loan current, AKA rent skimming.

With a typical note you'd have to do a lengthy foreclosure in case of default.

In the event of default of payment, seller has right to take back home without foreclosure process and depending on state you may lose all or some of your equity built up.

because it is easy for me to prove he didn't pay, and if he is evicted for non-payment, all the other problems are solved by default!".

I would walk, cuz the note is in default and there's no equity.

I began buying default properties at a discount, but the discount wasn't enough to resell at a profit, in most cases, so I held them and turned them into rentals.

Is it a short-sale property where the homeowners are in default on their mortgage with the lender or is it a bank-owned property whereas the lender already foreclosed on the property and has taken title / ownership?

I called the most recent one back because his letter stated that Land Records indicated that I was in default (???????). 

If there is anything given as a credit or consideration of any kind, regardless of what you call it that reduces an agreed price, you are financing, that's pretty simple as well.John Jackson doing L/O gives a credit to settlement costs, he's not reducing the sale piece, that type of credit should be fine.If any security interest is held in an installment contract (it is since title doesn't pass until performance has been met) you will have a financing arrangement.As to any service, I have spoken to a member here about an "origination" service, it is needed, that is not put together over night.Another way for SF deals being made safer for the lender is to lock in a graduated note purchase agreement in the event of default, I don't mind putting the arrangement out there since there isn't anyone who could throw that together over night either, it is similar to PMI but it is not insurance.