This business model is one of doing it and keeping everyone happy so the tenant/borrowe never calls the state banking division and rats you out.  

Looking to borrow $75k to $125k depending on terms.

However they will not start foreclosure until the borrower is 120 days past due.

You can't borrow more than the house's cost (unless you are doing the fund).

If things have gone good as far as your payments are concerned, your lender will want to keep you as a borrower.

This is the cheapest money you will ever borrow.  

The lender wants all "owners" to be on the mortgage so that they will have no problem using the property to cover a default.The only way I could imagine not having both buyers applying for a joint mortgage would be if both of the buyers could borrow money from a different source, either equity on a different property or investment.

Remember, the borrowers have deceased and the tax sale is coming up so discounting the note before that day I think would actually happen, and I can get a better deal here.

On a similar line of question, is it a good idea to pay down the LOC which you had borrowed from to purchase a rental?

Then I borrowed 25k from a relative for a down payment on a new house for our primary residence.