The resources on this site are outstanding as well as the folks who give their time and advice freely. 

Don't go ape on this, it's harder to explain in words than it is to wire-up in Excel and get the answers :whew:Personally, I was driving down the LTV with additional principle payments so the outstanding balance was diving at the same time as the ARM changes were climbing, and that was close enough to be a push (aka card game '21' term).

@James MaherUDFI taxation on mortgaged real estate in an IRA works essentially as follows:A debt financing ratio is determined based on the percentage of the value of the propety relative to the outstanding debt.  

The price of course will include any outstanding balances to the HOA.

If the property was foreclosed onit would have been sold and she would have received a Notice to Leave.Typically there is an opportunity to reduce the amount owed on the existing and outstanding mortgage debt by doing a short sale.

The most important factor would be your income, the amount of current outstanding debt and amount of new debt you want.If you have a sizable liquid assets (cash, stocks/bonds, life insurance, etc.) then some lenders will put a lean against that and let you borrow.You want to find a mortgage banker who is knowledgeable and has access to many loan programs.Please let me know if I can answer any other questions.Thanks,Upen Patel

In short, a lot of people shun these investments but it has been an outstanding winner for us!

SELLER WILL CURE AT THEIR OWN EXPENSE ANY OUTSTANDING LIENS, ENCUMBRANCES, OR JUDGMENTS.IF THE SELLER DEFAULTS UNDER THE TERMS OF THIS CONTRACT, BUYER MAY PURSUE ALL REMEDIES AVAILABLE AT LAW OR AT EQUITY INCLUDING COLLECTION OF MONETARY DAMAGES AND/OR SPECIFIC PERFORMANCE OF THIS CONTRACT.

With respect to liens, outstanding HOA fees, or other surprises, I have access to the MLS databases and LexisNexis and can perform cursory title searches.  

Your payment the next month stays the same but less of that payment will be interest because the outstanding balance is reduced.