It will be painful for a short time, but then we'll recover.

Hopefully, you were able to recover the money lost from their oversight.

But if you fail as a manager, landlord, marketer to move the property, if that is your intent, or you mess up buying the property, you will never recover.

I spoke with a recovering lawyer and he talked me out of getting an LLC and I was going to pay him to do it!

Eventually the economy will recover and that is when the trouble will start.

If the lender forecloses the deed of trust out of court, the lender has chosen one action and may not bring a lawsuit to recover a deficiency, which would be a second action.

Buy for cash flow or because you are able to purchase at a significant discount.Check this out on th BP blog: http://www.biggerpockets.com/renewsblog/2009/02/02/real-estate-market-doesnt-recover/ :cool:

@Sameer Jain  Cashing out under delayed financing exception you won't recover initial investment  according to information provided.

and all costs (out of pocket) you spend must be recovered "before" you can make a profit. 

The point being made is that all parties want to be in the best financial position to recover their money in case something goes wrong; given that you are a newbie, this will be important to lenders.