Why would you want an arm in a lending market that is going South?

That Mortgage was paid off with a 2005 86,000 refinance ARM at 9.125% that got adjustable last November.

Subject to is a viable & profitable startegy for RE investing, however, a great deal of "desperate sellers" today are desperate because they have terrible arm loans or neg am, or high interest rate loans.

The town probably has a population of 5k-7k and it's in rural PA but close enough to a 20k population town that suspect is where most of the residents work at.I feel like the media is trying to help kick start people into thinking the housing market is at it's bottom to get people buying again but the stats I get from my local Realtor on absorbtion rates, DOM, and prices says it's not near over yet.We also haven't seen the mass majority of the option arms begin to reset yet, that's another 2 years away until that wave gets here.

When I am driving around, I also like to make note of the addresses of "Homes in Distress" - weedy lawn, paint peeling, obvious neglet; "Signs Down" - the yard-arm is still up but the realtor sign is gone - maybe an expired listing;and of course if there are any FSBOs call them.Calling the We Buy Houses signs, will just get you other investors looking for sellers, but you can add them to your buyers list.

A good part of the investment was made through a HELOC (with an option ARM) on their primary home in Stockton Ca, which is now underwater and at the bottom of the sea.

In our local one, its an explicit height limit.

This is a accounting situation Mike has left out of his equation.Mike also invests in areas in which he carries a fire arm to the site, is faced with crack heads and low lifes (as he states in many posts on BP as well as his own blog).

Michael,Very few residential loans are assumable, in the sense that they explicitly allow another person to take over the loan.

Trouble is that FM&FM had this implicit, now explicit, government guarantee.