There lots of vacant houses with high mortgages that could be rented on a option or lease option or a delayed settlement situation.You can also find these deals, control the property and sell your interest to a user (this user you are looking for can't get a mortgage due to job loss, illness or whatever, but they have money to pay you a fee).

The re-defaulted homeowners don't go back into the Servicer's Loss Mitigation process, but rather straight to the Foreclosure one.I certainly understand the "investor" presence here and helping homeowners may not give you an instant income stream to flip or long-term for buy-n-hold strategies,..but I have found God with bless your business by doing the right things and the referral seed is priceless.Blessings ~Billy

Many times, if you manage this correctly, you can have zero vacancy loss and get commissions as well. 

I chose a different risk with exit strategies and possible losses I can live with.

You have a responsibility to try to mitigate the loss.

Property management will deal with the headache, but your pockets will have to deal with the loss if they decide not to pay next month because the doorknob doesn't turn the right way.

That kind of contingency is unnecessary and could delay or even break the deal.Tenants in place are easy to deal with.

Personally, I bought one at my primary residence and could not use it, straight loss of $450.

Even if you have to take a loss to make them whole, it is worth the little money you lose to be able to continue to do business with them. 

FHA mortgage insurance is for life of loan...it did not use to be this way, and will probably change in the borrower's favor later this year, as FHA is flush with cash after years of losses.