Thus, if you defaulted on your note and the bank foreclosed they would only be able to foreclose on half of the property.

Did not know about the income hit on the defaulted loan amount.

Is there not a clause in most mortgages that the Lender is entitled to rents when in default?

But in the appeal section it seems like it would but I doubt they will let this one slip during my appeal process”.I don’t think it holds them liable, it just means that your plan is approved by default.

buying default paper can be rewarding, so don't write it off.

There is language that says that until the contract is binding (signed and received by all parties), the bank can change their mind, but once the contract is signed, I've never seen anything giving the bank the right to terminate the contract without buyer default.

This sounds like a loser from day one and it seems like you are becoming a landlord by default, which is a terrible situation in most scenarios.

If your not on the loan, your probably safe if it goes into default.

That gives the buyer an empty, cleared lot free and clear if insurance is sufficient.Generally, non-payment of taxes or insurance won't be a default to file a deed, make sure, if that's the case, the seller can pay costs and add it to the amount owed with interest.Review it before you use it, I don't advocate using a bias contract, just a good one.

You are adding to those uncertainties the risk of default by your borrower.What will the value of the note be once this borrower misses a payment?