Strategy that may work in the short term

[Andy Chu]

There's been a huge push to slow down foreclosures to prevent robo-signing. In Las Vegas, they have completely stopped Notice of Defaults from filing, which means that owners can live in their houses for free.

Here is a little twist, some jurisdications like Nevada have HOAs (Home Owners Associations) be super priority liens, in which they can take the deed, if they foreclose, subject to any liens, 1st DOT/2nd DOT/ HELOC/ ETC.

Now since lenders cannot foreclose and HOAs still can foreclose, doesn't this make the HOA trustee sale a lot more valuable? You can virtually buy an HOA deed for $1500-3,000 and rent it out until the lenders decide to foreclose which wont happen for almost a year.

Just an interesting thought...

[Michael R.]

I think the only thing is ethics. You rent a house to a family knowing they might be forced out in a few months to a year. Also you have to deal with the fact they will receive letter from the bank on their door and will ask you whats up. you will have to either tell them the truth or lie about it. Some might not pay the rent to you because they know its going to foreclosure. Too many headaches for me I rather do things above the table and have a clean conscience. Besides you can put all the money you would invest in these deeds together for a down payment on a property you would be able to keep forever and actually build some equity in. I would not invest and do business like this but thats just me. If you do decide to persure this let us know how it goes.