They want investors to have a larger amount of cash invested in the property because it decreases the banks risk.

With this cushion, we roll in ALL closing costs, construction interest reserve which gives you the benefit of making no payments during construction, and also a $10,000 home equity line of credit that you have full access to at completion in case of any potential negative cash flow from renting or temporary vacancy before it sells or rents.

Remember when interest rates increase the price of notes (and bonds) falls, when they decrease the price of the notes and bonds rise.

Hopefully, it's temporary because of the mortgage moratorium.

If you refinanced to extract equity for future investment, your payment would go up because:- You have increased the LTV ratio; decreased the buffer of equity---rates will be higher.- You will most likely have to pay MI (or a higher payment if the lender pays it for you)- Your blended rate will be higher then your previous interest rate (if you have to go with a combo loan).Regards,Scott Miller

If everyone were to just wait until others do it, not only does it take longer, but profit margins deminish as opportunity decreases.

Loss mitigation techniques include the following: Special Forbearance, in which the lender arranges a repayment plan based on the borrower's financial situation and possibly provide for a temporary reduction or suspension of payments; Mortgage Modification, in which the lender reduces the monthly payment and/or extends the term of the mortgage; Partial Claim, in which the lender obtains a one-time payment from the FHA insurance fund to bring the mortgage current; Pre-Foreclosure Sale, in which the borrower avoids foreclosure by selling the property for less than the amount necessary to pay off the mortgage, and Deed-in-Lieu of Foreclosure, in which the borrower gives back the property to the lender.

This is a real zinger of a way to quickly restore one's IRA which was decreased by the internet bust (things will keep appreciating, beware!).

LOL, and now let's look at when the bubble busts and there is no longer appreciation or values are decreasing (which they are RIGHT NOW in many of those formerly hot areas).

I've found that so many people are on vacation now that a company often looks for Temporary work to cover the load and it can lead to full time.As far as Real Estate Investing, jump in the water's fine!