Are they financially responsible enough to have bank accounts and balance them without overdrafts or very low balances?

Fannie does not do high balance cash out and Freddie can only cash out on high balance cash out on non owner if you have 1-4 financed properties total and no more.They could always go to a portfolio lender or private lender to cash out as well.

Most of these cards require monthly payments of something like 2 or 2.5% of the outstanding balance.

The earlier in the case you catch it the lower these are all going to be, by the end of a foreclosure that takes years to complete you can see cases where the additional charges are more than 50% of the unpaid balance.  

If it is based on the percentage of an original loan - it looks like he needs to be to 90% of the original balance. 

Rich,Loans are sold in three manners:Par - 100% of the Unpaid Principal Balance (UPB)Premium - +100% of UPBDiscount - < 100% of UPBNew conventional loan originations are generally sold for Par or Premiums.  

Our fund tries to take a balanced approach being providing a 'decent' (8%) current yield from the cashflow to the investors, but then also having some upside due to adding value and driving up rents over time to give us some forced equity.  

The balance of the loan is now over $ 600,000  with fees , late charges .

You must understand that and strive for balance in your life."

I would also advocate a balanced life, work, play, physical, mental and spiritual development.