They went with one of those Mailboxes, Etc. type places and have it arranged that they can contact the business monthly, provide a mailing address and the company empties their PO Box and ships it to them. 

Brandon asked "how do you do this when every lender as soon as they hear "I want my entity to hold title" shoves you over to their commercial lending dept, wants 30%, interest rate resembles 1980, blah blah blah"The guest simply replies "it can be done but you need to do some hand holding" and just left it at that.

Those are arrangement which in my opinion violate the spirit of RESPA and should never have been permitted.

For Example: They are carrying about 300k of loans that they took out over the last few years, property is worth around 750k to me, so I proposed making their payments on their existing loans then making a separate loan payment to them for the difference at say 5.5% interest with the option for either party to request a balloon payoff at the 2 year mark (when I could reasonably expect to be able to qualify for a re-fi on the property as an established landlord), or we could continue on if all parties are happy with the arrangement.  

I recently put an application in with a mortgage broker and they said they are confident they can arrange finaincing but are going to charge 4 points worth of fees, which I find to be extremely high.

And doing so brings liability, even if the private note was in default, it is in connection with an installment sale arrangement, the buyer walks and the deal is off, the property is returned in lieu of full payment, even in Texas so it becomes an issue of breach of contract more than any credit issue.

While arranging and setting up a trust shows some rudimentary estate planning, it certainly doesn't eliminate anyone from being or becoming a motivated seller.

You may, however, arrange to meet with the tenant of record now, address the issue at hand, and talk with them about a move-out plan... anything is negotiable.

The fact they were upfront about the arrangement is a good sign to me.

Chris knew the seller was under a deadline due to arrangements made with the homeowner of the property and told the seller that the closing could happen in 2 weeks.