He wants to provide easy credit to people for homes again, he also wants to help people with bad credit scores due to foreclosures (I guess if your mortgage commencement date was between 2006 and 2008/9?)."

The balance on the mortgage is a little less than $40K and the value is around $175K.

In many cases, you could also drop down to a 25 year fixed, keep your payments ballpark the same (higher P&I payment, but no mortgage insurance, so a wash), but end up debt-free years sooner.

Otherwise, i am setting up a meeting with a mortgage lender ASAP that was recommended to ma by another investor to see if she can finance a deal like this for purchase. 

I am working on taking out a 2nd mortgage with a Credit Union.

For instance, if I think the house is worth $80k and the mortgage being foreclosed on was taken out 2 years ago for $100k I just stop my analysis there because there is no equity and the lender will buy it back for more than it's worth. 95% of the foreclosed properties in my area still fall into that category so I can quickly narrow down the list.From there I do a physical drive-by.

The bank that owns my mortgage will not do a HELOC in my state so I'm looking at the best alternative. 

Gross: 9500 x 12 = 114,000Operating Expenses = 4013 x 12 = 48,157 (calculator excludes the mortgage, acts if it was bought cash)NOI = 65,84365,843/600000 = 10.97

Do you expect to pay a similar interest rate to what the mortgage industry is?

I figure some of the properties that I run into ppl may be underwater on their mortgage.