Can't manage notes for another note holder unless you are an employee, any principal then requires a servicing arrangement, license under Dodd-Frank servicing any size of a portfolio for others.

Then you've been lucky if not.Your insurance arrangement doesn't cover you in an insured loss, try getting your option price back, your option to buy the property, the dirt and the dirt is still there, if you didn't insure your interests in the improvements that could be your problem.

There is a clause in the lease that says the agreement is renewed each week unless either party ends the arrangement in writing.  

@Isaac Essex Ha - I wish this was all true but it isn’t - flat fee listing agreement just to get your property and MLS are OK if you’re a seasoned investor and have been through many closings and transactions before - if you think that all a real estate agent does is put the property in MLS and then show up at a closing and have the closing company do all the work, you’re sadly mistaken - Real estate agents meet inspectors at the property, contractors, negotiate on the interest of their parties behalf usually resulting in a higher price, explain and educate the buyer on the contracts and addendum’s that need to be included, deal with homeowners associations and condo associations, Coordinating with lenders, insurance companies, attorneys, arrange for your property to be shown to pre-qualified buyers waiting for a property to show up BEFORE your property hits MLS, dealing with the closing company to correct all their mistakes prior to closing, etc - I could go on - I hope new investors will read this and take note - it’s a learning process people - a good agent is worth their weight in gold until your a seasoned investor

Wondering if it's legal to accept equity in a project for helping to arrange financing.  

Now I'm having second thoughts about the value of this arrangement.

Suggestions may be fine for "accredited" investors, you can't just tag anyone and you'll need to ensure they are accredited under the law.That is to seeking funds from the public.Now, you can seek private relationships and take on a partner, even those arrangements can be limited due to SEC regs and state security laws.At that dollar amount, you may not get more than management and something on the exit giving equity away.Seek compliance first, don't get off on the wrong foot trying some "investor method", then have issues and tehn owe money and then go to jail.

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!