Is it brings additional stress and heartache to homeowners ?
That all depends on the company. There are some really good ones out there and some fly by night.
It brings additional stress and heartache to homeowners when having to fight loan modification and short sale companies, who promise fixed loans, yet are unable to deliver.
There have been many unethical companies that have preyed upon distressed homeowners.
As an investor, you don’t have any control over what other people have done in the past. But what you can do is set clear expectation with the homeowner from the beginning. And don’t ask them for any money upfront.
If you end up helping them out of their situation with the house, you will be compensated - not before.
Hope this helps.