I'd call the bank's bluff and make 'em come after me for the deficiency.

I don't k now if I'm to conservative with my bidding or whats wrong.

U....nder C....orrect K....owlege When I say JUST DO IT...........I truely mean that It must be followed up with NEVER GIVE UP NEVER SURRENDER....

It's not a new program; it's the same ol' FHA 203(k) rehab loan that's been around for a long time.

For example, I bought an $50+K house for $17,500 (it needed $2,500 in cosmetic maintenance).Mike

If I think it cost me 25 k in repairs I double it.

Welcome Zac.I see you graduated from K-State, so all I have to say is MIZ!

Because short sales are currently net 80-82% of Fair Market Value to Fannie--which is more than Fannie gets from an REO sale, not to mention that by the time the property goes to foreclosure, it's worth far less in most areas of the country and has sometimes been vandalized. http://www.rebuild.org/news-article/foreclosure-and-stripping-homes/ To ensure that the former homeowner is ready to purchase again in two years, s/he should pay all their other debts on time and use no more than 50% credit capacity on credit cards.According to the Mortgage Debt Forgiveness Act of 2007, the amount of mortgage deficiency (known as "phantom income") will be forgiven if the house is owner occupied.

`(B) SHARED APPRECIATION- `(i) IN GENERAL- The Board shall establish standards and policies that will allow for the payment to the holder of any existing subordinate mortgage of a portion of any future appreciation in the property secured by such eligible mortgage that is owed to the Secretary pursuant to subsection (k).

I was perusing the foreclosure list today & I came across the perfect property: 3 units, 2/1, avg. rental for the area's $800/mo, purchased '99 for $53 k.