Seller would have a recorded installment contract that would afford the right to forfeit the contract in the event you defaulted on payment.Buyer: Thank you for making my point... that is a much higher risk and seller has no rights to the asset that is being foreclosed. 

Failure to repay the loan according to the plan's requirements could result in penalties and tax consequences.Tax Implications: While 401(k) loans are generally not subject to income tax or early withdrawal penalties, there can be tax implications if the loan is not repaid on time or if your husband defaults on the loan.

They have a lien on the property if we ever defaulted. 

@Stephen Bruce In South Carolina, where month-to-month tenancies default to a 30-day notice period with no formal contract, it's especially important to exercise due diligence.

The assumption here is that the US government will continue to be a government and will not default on its loans.

As long as your credit score is decent and there's no bankruptcies or defaults or felonies in your b.g. then Hard Money is perfect for you to help you scale, especially if you want to buy low, rehab it, and then refi out at a much higher value.That would require a bridge loan with rehab and then refi into a DSCR 30 year loan. 

Even if you default, the return to a lender is easily calculated using the loan terms usually defined in the note.

Last week I received $250M in defaulted doc and flip loans (we buy notes), so contrary to what people say here on BP where it’s all rainbows and unicorns - that is farthest from the truthNow I am not saying don’t flip a property, but also don’t feel forced like you have to.

When you catch the development early in preconstruction prices are very low then as units get sold they go up so something to consider if you going to wait until most units are sold reason why you need to do your research and make sure you working with a reputable developer that has not defaulted on the projects and delivered on time.

There is a twist though with FHA on 3 and 4 unit buildings in that they want it to meet a Self Sufficiency rule in case of default.