Rick also is a principal with www.assetsclearinghouse.com a facilitator for financial institutions seeking to liquidate their distressed assets and non-performing loans.

The lowest priced one is listed for $245K and it hasn't sold for months.My question is: Is there any chance WAMU would lower my principal to FMV and let me keep the property?

I guess they will indirectly benefit by keeping the financial markets functioning and therefore still be able to get credit in the near term.I'd be surprised to see if anything gets in there allowing judges to reduce principal balances on loans.

I assume his commission would come out of the loan principal and not as cash out of my pocket?

just stop making payments; it will take them 3-5 months to initiate foreclosure ( it starts with " notice of default"); but in the meanwhile congress will passs the BAILOUT; then uncle sam will buy your " toxic" note for something like 30 cents on a dollar; after that - most likely - uncle sam will " modify" your loan ( how'bout zero interest plus knocking off 65% of principal - would'n you make that kind of payment ?)

I think some may feel as if the article in the proposed bill pertaining to principal reduction loan mods will actually put an end to much of the short sale demand.

Principal of my firm lives in DC and his neighbor is a Senator on a banking committee.

I can continue to make the payments to her at 12% which the rent wil cover, but would prefer to be able to pay her back the principal and be done with it.

As you are acting as principal in the transaction, you do not need a RE license.

If a plan passes where the government shells out a bunch of money to write down principal and adjust rates to get people out of trouble what will happen to the rest of us?