All possible collection efforts are made to work with the borrower directly and their lender to get their loan re-performing or make other arrangements with the borrower such as "cash for keys" or a "deed in lieu of foreclosure". 

Options can be handy for speculation, 5 and 10 year options on raw land with a farmer can be had pretty cheap, consideration can be in connection with a partnership arrangement to develop later on.

If you want 5 on the assignment, collect 5K for the deposit and 5K for the right to purchase.Now, you could arrange for the amounts to be returned between the settlement agent and the buyer, but your funds are at risk if the buyer failed to close and walked away, you'd have to chase that buyer down.My suggestion, don't do properties requiring larger EMD unless you already know your buyers and know they have the money!  

A POA, (Special Power of Attorney, in RE) might be necessary where you may need to obtain a building permit and oversee repairs under some arrangements, they should be very specific and limited in time, but not in a Sub-2 as you are in title.Loan servicing takes care of your contract and they may make the payment on the underlying mortgage.

There are many examples of members of BP that have that arrangement.

Run from a Contract For Deed, there are questions as to the validity of pre-arranged deeds executed to avoid foreclosure laws.

Contemplating how we mold what we learn into our way of doing business so that it works for us is one of the keys to success.

So I take it that your current strategy is looking to make the needed repairs, rent the property ASAP to start generating cash flow and then live in a 2 BR apartment or some similar minimal living arrangement for you and your daughter? 

We arranged to hand over the keys on her return. 

I agree, I didn't explain well.Total job was $12K for labor and materials to do the following:- tuck pointing throughout the house- install 6 basement windows and replace 2 window sills- install windows and 3 exterior doors- install blown-in insulation in attic + baffles- install siding on garage- install gutters on garage and house- install gutters and trim on houseI paid $6K as a deposit to get started.What he did before I pulled the plug on the project was:- tuck pointing- basement windowsHe said he has ordered and paid for the windows and doors but he never delivered them to me or made arrangements for me to pick them up.