Couple questions about foreclosures

[Benjamin Cowles]

I'm marketing to them and as I'm working on them and envisioning various scenarios I often find myself confused. So please grade my assumptions here.

If I take over someone's payments, would I want to put it in a trust and then put the insurance policy in the name of the trust or is all this going too far to avoid the DOS?

Also, I'm guessing with foreclosures you don't take over payments unless the LTV is low enough should the bank call the note due and you then have to buy it. Otherwise, with properties not quite underwater but 'treading' you'd have to be willing to pursue a short sale? Is that correct?

Now regarding the homeowner's situation here if you take over payments, do you try to make any promises or just assurances that you'll refi and pay them off someday soon? How do you address that concern or do you normally target people in such dire straits they won't be worrying about that much?