poke holes please.If you are targeting a specific home, let's say driving for dollars and you find some nice homes that look abandoned but you want, you look it up and its had a notice of default, title search - clean.Is there a play here to find out who holds the note to contact them and purchase it, then proceed with the foreclosure (assuming it doesn't get caught up).  

That's the default I use in my calculations, although the actual interest rate will probably be a bit lower.

Kristine Marie Poe The OP posted that the sub2 buyer/middleman, executed a QCD to her, when the mortgage went into default and foreclosure started. 

Know if the buyer on these agreements default, you have to repossess not evict.Know you have a Due on Sale issue, and that if notified, you need a strategy to pay off the underlying loan.  

If I am catching your line of thinking, the foreclosure default is already on record so the IRS sort of has notice.

Land Contracts in Ohio are popular, and there is a realty law that says if you have less then 20% equity in a land contract, and less than 5 years, and the vendee - buyer defaults in paying on the contract, you as the vendor - owner can evict in landlord tenant court.So you as a REI could buy on land contract without alot of credit or cash.  

This article talks about that. http://www.nolo.com/legal-encyclopedia/when-can-i-get-mortgage-after-foreclosure.htmlCan I ask if this was a strategic default?

Better to do it slow and be successful than to rush into it and end up stretched too thin and putting yourself into default if an emergency hits. 

(Obviously your state may have modified this so you should ask a local lawyer).Also if you have a contract, then the terms of the contract will win out over this default situation.Edit: Ok I see you're talking about a trust now. 

(Unless the person defaults and you wind up taking over their property.)+ If you establish trust with someone and build a relationship, you can wind up lending to them over and over and make more money.Cons- You need to build trust in someone and make sure they have credibility.