Cash back cannot be generated from thin air, despite what George Bush and Congress think.There are 3 simple things you could have done (and future newbies should always do) to have prevented this:Due DiligenceDue Diligence Due DiligenceThe only upside of this; (like the upside of the RE and S&L crash of the '80s) is that a lot of us, will make a lot of profit snapping up these deals for twenty five cents on the dollar in the future.

This is done to quickly determine and resolve any occupant issues, secure the property (No Trespassing), halt code violation fines, and as important, to prevent further deterioration of the property, and to rectify any public safety issues.

This can prevent headaches down the road.

I work in foreclosure prevention, loan referrals and I recently started compiling Lease-Option/Rental leads for investors and regular property owners who are looking for tennants.

Bush to become law, would prevent the IRS from taxing any debt forgiven in a foreclosure as income at rates as high as 35 percent.

Hence the prevention of an assignment.Put another way there is nothing illegal about assigning a short sale.

Lets call it growing pains.That said, as we move forward, we will be upgrading our equipment to prevent this from happening again.I want to express my deepest apologies for any inconvenience this crash may have caused for any of you, and hope we can count on your continued support as we move forward in the future.Sincerely,Joshua DorkinFounderBiggerPockets.com

A bank can make an internal decision to prevent all deals involving an assignment.

If you had made an investment and lost it (cash out of pocket), then you typically can write it off, but if you never spent it or made it, I doubt it.Not sounding smart, but I suppose if you could write it off, what would prevent me from saying that every time I showed a house, I could have sold it and I should write off that commission as lost.

It may stave off the inevitable drop, but it won't prevent it.