Of course, I don't throw it in their faces that I'm doing this - it takes a bit of discretion. I also have the homeowner sign a Limited Real Estate Power of Attorney, which allows me, or whomever, to work with any problems associated with the property, e.g. insurance, repairs, etc. After all documents have been signed, I obtain wired funds or a cashier's check from the investor for the necessary amount, plus the assignment fee, if applicable, and expedite to the foreclosure attorney handling the sale. This is only done after the house has been vacated by the former homeowners so no eviction problems ensue. The Deed is then recorded at the County Courthouse.
Investor takes care of any repairs and preparation.
As with any investment, there is some risk involved. If you own the property your loan could be called in the unlikely event the mortgage company wanted to pursue the due on sale provision in the mortgage. The best way to avoid this is to make all payments on time. If it did happen, however, the worst that could happen is you would have to obtain new financing. If you are just providing funds for investment, there is the possibility I could default.