. $67k is above what it is worth without taking into consideration my risk or profit.

I actually do see this insured class having greater risks, but that can be managed knowing who mom and dad are and having contact with them and the kid, lay down the law!

We are currently looking for a good buyers agent, an insurance company that can do both the companies insurance as well as builders risk and vacant home insurance and an accountant that not only works with but is a real estate investor. 

All good things to know.Wholesaling is a great way to be involved in the real estate market without having the cash it takes to jump straight in to long term rentals.

BP members should not get involved with people like that. 

@Charles Worth,Just curious as to why you think it might not end well.No investment is guaranteed to produce a return and all investment involves risk, especially the risk of loss including, but not limited to, the amount invested.

At the very least, the local title company should be helpful, I would think.I would expect you'd need to involve some type of transactional funding so you can do two transactions: foreclosure to you (auction sale), then sale to end buyer.

Looking forward to getting involved and figuring out a path to get things moving.

That puts the lender at a huge risk and from a business standpoint is very very risky.  

An I believe your lender is referring to the fact that owner-occupied properties are viewed as lower risk for Banks' Underwriters thus the terms are more favorable.