I find a seller who is four months behind on their mortgage,  they still owe 100k on the mortgage.

It seemed to me he was creating docs not as a principal but as an unlicensed third party between the homeowner and Diversified Inc.  

This occurs when your principal is significantly larger than the interest be paid on a project.  

Since I was able to get an asking price from the seller and what he allegedly owes the banks to get out of the properties I was able to calculate a 10.117% CAP rate and know where his bottom line should be, depicted below.  

Hi @Michelle Robinson I'm not sure what the tax foreclosure laws are in Georgia but in Michigan most counties give you up until the day of the auction to retrieve the property by paying the taxes that are owed.

Will they still owe the bank money and all back interest and fees.

They don't want to own more property than they already do.Also, check with your local taxing authority to get a number on any back taxes currently owed. 

My PITI (principal, interest, taxes, and insurance) expenses will be about $700/mo (our taxes are very high), so, not including maintenance, management and vacancy, it will cash flow between $400 and $500 per month.  

AND that I can wait out a mistake over a longer time period, with monthly cash outflows, instead of owing a huge mortgage with no cashflow.I think I'm going to take your suggestion and wait for a 2-fourplex to come around.  

A "real estate broker" is any person, partnership, limited partnership, limited liability company, association, professional corporation, or corporation, foreign or domestic who, for another, and for a compensation or valuable consideration, does, or attempts to do, any or all of the following...In Utah, we have a list of exceptions including being a principal on a transaction.