The rate is locked for 5 years, at the five year mark the rate adjusts to whatever the five year treasury rate is (plus whatever % they add).

My banker suggested HELOC loans are often pegged to treasury rate.

@Jean-Claude GovernaleThe best definition I've heard of CAP rate is a measurement of the risk premium of your investment when compared to 10-year Treasury Bill (considered a "risk-free" investment).

Governmental seized properties go to a listing process, under fed or state Treasury rules, don't see any advantage there.A bail bondsman is an insurance agent underwriting for a company, they probably don't have anything to do with properties, like a State Farm agent trying to sell off a total loss property, that's not in their realm of responsibility. :)      

Treasury bills are generally considered a proxy for "risk free" investments and even those are not truly risk free.

Every single time 10 year treasury looks like it will go over 3% it doesn't.

I thought a very interesting point was that to many investors we are looking for a 10 CAP or better but many of these other companies are happy to get lower CAPS because treasuries and CD's are paying out next to nothing.There is also 3 trillion worth of commercial debt maturing between now and 2018 which is very telling.It will be very interesting over the next decade for sure.

Foreclosure, Bank-Owned)-Government Agencies                       -Department of Housing and Urban Development                       -Department of Treasury-Auction Houses

Generating cash flow through out of area property purchase is not like buying a Treasury Bill or a bond. 

In other words, a lower risk asset (Class A apartment building in a major metro area or a 10Y US Treasury) is going to have a lower return that a riskier asset.