I'm aware that other brokers make similar deals, so you need to check on recourse agreements to ensure a broker can buy back a note, I'd say PPR can simply because I've not heard a bad word about them or Dave, my comment is more to the practice of substation of notes as well as notes with agreements for the substitution of collateral; collateral should never be substituted without consent on an investor or holder.I'm pretty sure Dave or PPR will assist in securing collateral, that may not mean they cover the costs of a trustee or sale, don't know, but I've not heard of no risk investing in notes. :) 

Now, all of this is not to say that the broker shop will not make strides to become efficient knowing the guidelines due to their loan volume of what Investor B accept.  

I prefer to rely on current work references to ensure they have a stable job.

If yes, is there any way we can get the process slowed with ensuring to the certificate holder that the money will come to pay him back?

If you had the cash and the knowledge of researching title to ensure that there were no other liens that survive the trustees sale, you could buy it at the auction (assuming that no one else outbids you by paying more than $190K which all it's worth at auction).  

If you buy one, be happy with the fact that it may never appreciate and ensure you have good cash flow.  

I use craigslist a lot and the map feature is an efficient way to estimate rent for a property you're looking atYou can look at current listings and what prices homes sold for on Redfin Shop for financing (2nd loans, HELOC..etc) from as many sources as you can - Chase gave you one option, get other options from other banks and credit unions in the area. $40,000 (for total purchase price) might not get you a SFR in the antelope valley but might get you a mobile home - $6,000 will of course limits your options.

Look at efficient plumbing runs by keeping bathrooms and kitchens oriented properly (back to back or above/below).

Hi @Steve Veen - when you say value play, does that mean increasing the value of the investment by your actions, like running it more efficiently, raising rents, etc?  

-there are a few studies that have shown that green homes have sold for more than their non-green counterparts:http://www.washingtonpost.com/realestate/study-finds-that-energy-efficient-homes-often-command-higher-prices/2012/07/19/gJQAF4MiwW_story.html  I for one would like to see more studies done to validate these findings.