Is anyone lending money to home owners that are about to lose their home to tax foreclosure and using the property as collateral should they not pay it back?  

If you do one you shouldn't have a problem as now you can use property as cross-collateralization.

Recovered cash plus profit is used in the next deal.Rinse and repeat.      4 - Using non-collateralized loans, where some of the cash from the loan is used as a DP on an investment where the return from that investment (cash flow) pays the debt service on both the investment and the original Loan. 

In our real estate investing, we do not plan to use our home as collateral for any loans.When we were younger (in a previous house), we paid ahead on our mortgage too aggressively, and at one point found that we were way too "cash poor".  

They may want to use your investment property or a car as collateral but it shouldn't be that difficult to come up with the money. 

The original Note was lost, but the Collateral File includes an Affidavit for the lost note that seems to create a complete the history.

Took back a property by foreclosing a second lien on additional property collateral to the main collateral back in 2009.

We bought the stick built for $1,000 and it was good enough for the bank to count as collateral. 

Collateral , Credit, Capacity and Character...Organized does not hurt.

All you really need is access to the Internet to view lists of notes for sale and run comps on the collateral.