Cancellation of Debt is not *always* taxable.Check out this IRS documentation and see if it applies to you.http://www.irs.gov/uac/Home-Foreclosure-and-Debt-Cancellation

If any of you have; what has been your experience, with using these documents.

It's the fact of the initial sale that triggers the clause in the mortgage loan documents.

I am going to put together a document or powerpoint showing exactly what I am looking for and what not to send me.

According to that chapter, an “outright gift of the cash investment is acceptable if the donor is” one of the following: The borrower’s relative / family memberThe borrower’s employer or labor unionA close friend who has a “clearly defined and documented interest” in the borrowerAn approved charity organizationA public entity or government agency that offers assistance to (A) first-time home buyers or (B) families with low to moderate incomeThis just handles the down payment funds.

What I have found is up to 18% rate, that's seems so high to me and that's with providing income documents and $10k down.

You might buy with a 15% discount, depends on the note, the history, the documents, the collateral and the seller's motivation.These private notes  are dealt with one on one.

Or $200/doorThe current owner has been bad about getting us documents, we have yet to see the leases, which is making me nervous, and the cost of the roof being an unknown is also worrying me.

I would like to schedule a consultation asap and do a document review. 

Document it.