Interesting concept. Some questions I have even after reading the link mentioned above, doesn't a trust have to be set up by someone? In this case the seller gets the trust, possibly not having the cash to set up the trust, maybe it's not that much and I'm questioning nothing.

Additionally, many of the loans out there are ARM's and the fact they are going up up up may be why the owner is wanting to walk away, in distress or whatever the case may be. Yes, there are other reasons for the owner to be motivated, but my question is about servicing these loans. If these loans have grown to the point they're out of rent/lease range, you have negative cashflow. If you can afford that great, but the very nature of the ARM may keep increasing the negative cashflow.

I know one answer is don't do the deal, but with a large number of loans potentially falling into this catagory, is there an answer other than letting the bank take it and waiting to buy from them?