Or is it when you let the property deteriorate without giving a damn.

Since they have assets (down payment on the new house, that 1031 money), you can expect the lenders to come after them for the outstanding amounts on their loans as well as all the legal fees.

If I knew the business, as apparently you do, I would of done the damn loan myslef.

I'm from Phoenix as well, only I have an outstanding credit score and money.

Doesn't meet my criteria.But hey- you bought it, knowing damned well you couldn't pay for it...or...cashed it out...not to improve, but to go on vacation....Now you're stuck, and I cant even help....but I will be there when the bank resells it, cause at this point in time at least the bank knows they made a bad decision, and you may not have the equity to sell at a loss, but hey - the bank can.

Thought it was outstanding.

Can't honestly say that I've studied any of the material as of late.Anyway, I have about 110K in equity in my house, just secured a line of credit for 90K and I have a credit score between 710 and 800.I have a GREAT handyman/carpenter lined up and he has an outstanding work ethic.

Prime plus or LIBOR plus on the money outstanding.

I scan deals quickly and only look at the numbers if there is no major issues outstanding.

One deal outstanding right now, and another in the works.