Great point Jerry.One area that is often allowed, as Jerry mentioned, is the "indemnification of any tax liability arising from any payment made not amortized" in seller financed deals.

That's our nod to flexibility for taking into account holidays, weekends and unusual circumstances that may arise.

It's important to have this to make sure you are both covered and know what's going to happen when issues arise.

Because of this, it's easy to get caught in a tough deal in a rising market.As an investor, you always have options.

I think that the issue that will arise is that it will be difficult to get a bank to do the loan, especially if you are only trying to finance out the smaller private lender loan.

You won't find any lender foreclosing on a past breach that has been cured, IMO, as if that borrower were to object and require a judicial process, as they can anywhere, what judge would force an owner out for a condition that no longer exists and arising out of what may have been poor judgment?

I personally would still purchase a full appraisal for my own piece of mind and as needed use that to defend any issues arising from the use of the BPO.

If compliance issues arise the attorney should seek advice if they lack expertise.

Because a lien is not a mortgage, no loan was advanced, and a deed of trust is a secutrity agreement, other special trust deeds can be used for liens to perfect the secured interest arising from the lien. :)

The questions arise when I approach home owners while wearing my "investor" hat, what is required and what is most ethical.