Flipping Sequence Of Events
I am new and trying to figure this out. I am going to convey my conception of how flipping works. Please review this hypothetical situation and correct any confusion you may detect...
Step 1. Advertise "In Foreclosure? Losing Your House? Call Me and I Will Put Money In Your Pocket and Rescue You From Default!!!"
Step 2. Answer responding phone calls and ask the following questions:
A) What is the address of your home?
(Use this info to get comps)
B) How much do you owe on your mortgage?
C) When is the bank planning to foreclose on your home?
Step 3. Assuming the numbers show profit (for this example, I'll say it's a 110k house and the guy owes 70k), make an appointment to see him at the house immediately.
Step 4. Assuming the house looks in good shape when you get there, offer the guy to buy his house for what he owes plus 5k cash.
Step 5. Assuming he agrees, give him a crisp 100 bill and get him to sign a purchase contract giving you control of the property for 75k. (he gets the 5k at closing then? minus the $100 I already gave him right?)
Step 6. Break down the number on the deal on this and other investor forums and offer the deal to whoever likes it, disclosing my fee ($2k).
Step 7. Personally meet with the interested investor, and 'Assign' the contract to them and my crisp $100 bill back (I don't get my 1.9k until he closes?)
Step 8. The investor arranges his own financing, all three of us must physically appear at the close, the sellers loan gets paid off, the seller gets his $4,900 cash, and I get my $1,900 cash.
Step 9. The investor/buyer has a total of $77k into the house plus maybe $1K in closing costs = $78K, sells the house quick at a discount...say $100k and pockets $23k (unless he sells through a realtor, in which case he makes an even $20k)
Step 10. I go meet my girlfriend for coffee.
The End ....Right?
My confusion arises when I hear terms like "Affidavit of Purchase and Sale" and "Title Commitment" and the phrase "Deed Drawn Up"....
Please help me clear my head on this....Let me know what I'm missing...
I think I am ready to start advertising, but I have got to get the process cemented in my brain with confidence. I still have these unanswered questions. I hear so much about integrity and sticking to your word and not backing out of a deal you have made, so I want to feel confident that I can see any deal through....ya know?
Any help would be appreciated...
THANX!!!!! 
Why not short sale at the foreclosure stage? In doing so you follow all of the steps you outlined but you negotiate with the loss mitigation officer of the institution that holds the note. First you would have to get the owner to sign an authorization to release form, which just gives you the "authority" to discuss the matter on behalf of the owner. You want to have the owner(s) state why they cannot make the payments. You then want to make an offer after considering and disclosing the amount of repairs that need to be done. You can usually get the note discounted 15-25% (more in some cases). Then with your buyer lined up you can still make an easy additional 10-15K.
The Department of Loss Mitigation is not in place to make money. It is merely a problem solving team. If the property goes to foreclosure the institution will not get anything close to what the property is worth. So they will agree to your offer as long as it is reasonable and justifiable.
PLEASE BE ADVISED THAT ALL INFORMATION SHARED IS BASED ON OPINION AND THEORY. WHILE SUCH METHODS HAVE BEEN USED AND DO WORK... IT WOULD BE IN YOUR BEST INTEREST TO CONDUCT YOUR OWN RESEARCH.
Til Next Time,
Ervan