I think a lot of people don't realize that loan fraud is a federal offense.

@Mauricio Hernández Don't know if transferring title to a single member LLC will actually shield you from liability as many attorneys are expert in "piercing the corporate (LLC) veil, but it does put up an additional layer of possible protection.Forming LLC is being easily done on the internet, popular states for LLCs are Nevada, Texas, Wyoming and Alaska; however benefits of out of state (foreign) LLC from where the property is located may illusionary.

Price fixing is illegal in many states, and it may run afoul of some federal regulations.I know your intentions are meant well or you would not have posted, and I am sure after thinking about it you would have reached the same conclusion, but I thought I should point this out to you.

Even what Nevada called allodial title was not true allodial title as the federal government could still seize the land under emminent domain laws, or the state could seize it under certain circumstances.In the US, only the federal government has true allodial title, and perhaps some other government entities and the American Indian tribes come close.

It needs far too much cosmetic work for the typical owner-occupant, which explains why it has sat on the market for so long in an extremely popular area.There have been two houses in the same neighborhood that were bought, rehabbed, and sold within six months of the initial sale, for what appears to be very decent profit margins.

I am an ex realtor, but short sales werent popular back then and never dealt with one.

there is a wonderful book that I read some years back Extraordinary Popular Delusions & the Madness of Crowds.

Understand and comply with all legal obligations of a seller/lender under the note and security document, as well as applicable State and Federal statutes.

Apparently the current owners take cash at their office (off site- none here at the complex) and this seems to be a popular way of payment.

What you are suggesting is a very popular strategy that many investors are using these days.