The only reason that wouldn't happen is if the borrower gives you a Deed in Lieu of foreclosure - essentially signs the house over to you. 

Regarding the risk, I see it as essentially the same as being a landlord.

@Abel Curiel  It's essential to have an attorney form an agreement prior to purchasing together.

If your c Corp pays you the essential net income on the property, what’s the advantage?

It is essentially like having a home inspection done to make sure the property is in good condition, but its an inspection of the title so it falls under buyers expense.

Essentially a rental. 

@Andrew Hinton your statement that "any investment would be a qualifying investment transaction under state and federal mandates" does not lower my red flags when the point essentially raises how you qualify your deals.

The lease essentially sets out a payment expectation. 

@Min KangNot a financing expert but, I think what your asking is essentially how to split profit for a flip, and in your case what's a common split for a lender holding just the 1st position lien (lending only the purchase amount)?

But the policy documents list us, the owners, as occupants and instead of just coverage from the walls in, essentially, also cover our personal property, as if we lived there.