The Home Inspector report revealed major deficiencies in the rehab and the Home Inspector told me that the rehab was like “putting lipstick on a pig”.

They get poperty in an "open" auction and now may sell for any price and go for a possiible deficiency judgement.4.

And with MS dual action deficiency statues the PG's in that state are very strong.. and since there is no equity in the deal the deal was made almost like a unsecured LOC  they just happen to tie an OERO to it and they can do that with some latitude..

Originally posted by "**********":There is two other alternatives besides FHA short refi,or short refi with your bank.A) An audit of your loans looking for any hint of bank boo boo's, a real shot in the dark, especially since your loans were not sub prime or Alt-A.B) Deed in Lieu - Could save your credit and NO deficiency if done correctly.Have a safe and productive trip.A) I am not sure if it was Sub-Prime.

Maybe someone can fix that so I can click on it.I am still technologically deficient compared to most people on any site, probably even on Big Bird's site, if he has one!

The second most, is some deficiency that buyers can't get over, and therefore price again.

Buildings that are likely deficient in some other ways, such that good tenants who don't want to live in a dump can move on and bad tenants put up with it because they get over on you for the rent.4.

So unless you have a situation like what happened in PHX in 08 were you have MASSIVE vacancies and same with Vegas you had prices crash along with retail homeowners with purchase money loans ( no deficiency judgement allowed) it became a cascade effect..knew buyers the last decade are in my mind more educated ( thanks BP)  locked in historic low rates   and had to actually qualify for their loans.. 

It reflects a property in which many of its short-lived building components are at the end of or have exceeded their physical life expectancy but remain functional.C6 The improvements have substantial damage or deferred maintenance with deficiencies or defects that are severe enough to affect the safety, soundness, or structural integrity of the improvements.

@Karen Margrave my point is simply that we all have to overcome a perceived deficiency or flaw; whether accurate or not.I'm just honest enough to admit that I form opinions of people throughout my experience with them.