Buying the Property from a NPN

[Eric Lawson]

Hi all, 

Here's a highly simplified hypothetical situation. Let's say I buy a 1st NPN for 20k with an UPB of 100k and it's the only lien on the house. What's stopping me from forgiving the debt and paying the owner say 5k for the title, then turning around and selling that home for it's ARV? I haven't heard anybody mention this strategy but it seems like a much better option than foreclosing. Is this a realistic strategy or is there something I'm missing?

[Bob Malecki]

...and sometimes we reference our borrowers as PITA = Pain In The Arse...