Lot's of stuff put in leases isn't legal or enforceable.Go read your contract ( lease agreement ) for default provisions.No legal advice.    

If your rent covers your expenses, it doesn't matter what the market value of the property is.If your rent covers your expenses AND cost of leverage, it doesn't matter what the market value of the property is.This is true for leverage UNLESS your loan terms comes to an end, and you are underwater, then you face default since a neither a refi nor sales may pay off your balance.You can mitigate the risks of going under water by not over leveraging.

I believe there is a blog post of 101 ways to find deals (something like that)Here are a fewpre foreclosure foreclosure auctionREOVacant housesTax default propertiesestatescode violationsdirect mailGood luck - Ned

If you know what you are doing, are comfortable taking the risk and understand the ramifications of defaulting on this kind of loan, then there should be no problems.  

While I understand that lease options are made that terminate the option upon default of the lease, such may not hold water if the tenant barks as an option may not be made with conditions or strings attached.

Account Closed What is amortization and why is the default 25?

Since real estate title, tax, probate and other laws vary so much from state to state, I'm in favor of selecting a single state to focus on the the beginning, otherwise, it's easy to get overwhelmed and never do a deal.Since you are in CA, why not begin with CA delinquent and defaulted taxes?  

Went to court and obtained a default judgment because he was in jail, on some other matter, on the court date. 

I really want to get default or to court ASAP.  

Each landlord can set their own process.Landlords won't promise to contact you when the tenants first defaults, but you can provide your e-mail address and phone number and ask that you be involved when things start to go bad so that you can work to get a better outcome.