Why would a debt buyer/investor purchase a delinquent note at face value and then proceed to foreclose on the property to collect on the same note?

(and is it customary for landlords to verify legitimacy of dog/cat permit documents, or just take them at face value?).

@Chad Duncan I would suggest door knocking, that way you can get a face-to-face with the owner and they can make an immediate impression, be it good or bad.

It should therefore be no surprise that the 'owner' of this property might face foreclosure.

It would take a long time to run through everything typing or even face to face at lunch or dinner, likely several meetings.

If you are doing a double close you could face 2 sets of closings as you will have closing cost on your buy side from the seller and your sale side with your new buyer.  

Otherwise homeowner is facing " baloon paymkent" at maturity - disaster waiting to happen........ or as some would call it " a ticking bomb"atargetOK, in general it does help to read and understand what other people write.Again, an interest only loan can be serviced as if it is a repayment loan with the FREE option of not having to make the principal part of the payment.On a 30 year time horizon there is almost a ZERO% chance of home values being lower than today.

You also should look into setting up business lines of credit with your lender for yoru acquisitions.Wow, just realizing there are a ton of new faces on these forums from NJ, maybe I should move there to be part of the "in crowd"?

In 10 years could you tell the court with a straight face you honestly believed you had a right to take that property?

Nothing beats being face to face.