To eliminate foreclosure, many investors are now using the contract for option to help buyers get qualified for a loan. They also are using that with existing tenants to get them financing. When documented carefully, the option deposit and the monthly credits will be accepted by lenders. We make a copy of the option deposit check for the file. Monthly credits are supposed to be in addition to market rents. Many lenders treat the process as a 'refi', which can be quicker and less expensive.
The contract for option eliminates the possibility of needing to foreclose an option holder.
In order to implement these techniques you will need proven documents and procedures which you can get at here.
Do you find that the lenders will want to see a certain format or servicing company involved in order to qualify the tenant would-be buyer? How much over market is typical for monthly credits, if there is a typical amount?