`(e) Requirements of Insured Mortgages- To be eligible for insurance under this section, a refinanced eligible mortgage shall comply with all of the following requirements:`(1) LACK OF CAPACITY TO PAY EXISTING MORTGAGE- `(A) BORROWER CERTIFICATION- `(i) IN GENERAL- The mortgagor shall provide certification to the Secretary that the mortgagor has not intentionally defaulted on the mortgage or any other debt, and has not knowingly, or willfully and with actual knowledge, furnished material information known to be false for the purpose of obtaining any eligible mortgage.

I need 1.2 + debt to income ration for my lender...So, if I offer $30,000, cashflow is $172 ($228 payment)...Am I thinking correctly?

We could easily come up with 10% downpayment on a $120K house but is financing a little hard these days for two students with credit scores of 690 with a little debt?

Does not want to refi.I am looking for a way to profit from this lead - possibly by referring her to someone who can help.

The same REIT that joint ventures the REO purchase converts their debt interest (I'm the equity owner of the REO for several days) into a 30-year fixed-rate mortgage given at 6% - 9.9%, usually 7 - 8.5 %.

I plan to keep in contact with them to see where it leads.

Because of the limited leads that I am getting I would invest inany sort of deal that makes sense (profitable).

The sellers does not owe anything on the properties and she did not understand that with my debt service the duplex is not a deal for me....she just knows that paid for it makes her money.Thanks again.

Some have said the best way to get these leads is by placing bandit (We Buy Houses) signs all around, and hopefully motivated sellers will call you, some of whom would be preforeclosure leads.

Anyway, the correct way if your valuing by the income approach is to take the total yearly gross income, subtract all of the expenses except debt service (principal and interest payments).