Gary, IN and other rust belt markets

[Steve Hodgdon]

hello all - Opinions on buying NPN's on bottom end properties in urban markets? Cleveland, Detroit?

• Cross off Chicago and other markets with tough foreclosure laws.
• What about huge tax bills? Will some counties abate if you're bringing a property back on the tax roll?
• Unsellable/rental properties?
• Price compared to FMV and UPB? I see notes at 30% of UPB, but they're 2006 notes with NO PAYMENTS and property value is iffy.
• 100 year old homes?
• Opportunity to "be the bank" but the borrower didn't pay the last bank and I'm not any different than other lenders.

Worth the effort to pick up properties for $5-20k? Is there an active retrade market? If I found "it" would you buy it? At what price and diligence level?

What could go wrong? Feel free to let it fly!

thanks!