I run a real estate investment company that focuses on investing in defaulted promissory notes secured by commercial and residential real estate nationwide.

And in those documents it states that if he defaults, I end up with the property? 

If they don't default then we will just have to wait to get those rents up.

They also make sure the house has enough value if there is a default in payment.

To legalize the transaction with my lender and to have everything spelled out i.e. interest rate, term period, how to proceed if default occurs etc...  

Too much leverage will get people to default when the economy goes south.

I don't want to get stuck with a building that can potentially default. 

I know this is a very broad question and in fact, I'm just looking for anything that comes to your mind that might help me avoid unforeseen risk or headache.Worse case scenario, if the buyer defaults, what is the the foreclosure procedure like and how much should I budget for that? 

If I decide to loan money in this format how hard is it to take over a defaulted property?

She never showed up for the court hearing- I won by default anyway.Another time, I went through my credit reporting company where I run the applications through.