ALL of our short sale P&S's state much of what you mentioned, that the sale is contingent on the bank NOT issuing a deficiency judgement.

RE investors still have to make a living, but we are pointing out the true deficiencies in the gov't that is causing hyperinflation and a larger bust cycle.

I am getting ready to prepare tax form 1065 (and the related K-1 forms).

The laws in the State it is in and what the deficiencies laws are, was the heloc taken out on the purchase or as truly as cash out loan after the purchase…These are hard questions to answer… But the easy (but not complete) answers are… Maybe they can put liens on your assets… but actually it is called a levy where they can seize the asset… but again there are a lot of variables.

The cost normaly runs 1.5% or a flat rate of 1 k.

I am still working on repairs of about 2-3 K per unit and I am not a contractor so I am a little slower SMILEAnyways I should make about 20,000 if I decide to sell it, not sure yet.Thanks for the GREAT story.Dan Schemerhorn

Instead they just want to get the pain over with as quickly as possible.You also have to find a bank that is motivated and doesn't want the property (shopped) listed by the seller to fully expose multiple offers and compete with other investors.This is why many people wholesale.They make a few k on a marginal deal and let other investors take the high risk.Then they only buy when they get a really good deal for themselves.I would say "Do not get emotionally attached to this deal and overpay because you wanted to BUY SOMETHING" Instead just treat it as a property and if someone overpays for your goals then move on to the next.Remember it is easy to build a crap portfolio with marginal returns.It is much,much harder to build long term quality properties at a great price that will create generational wealth for the your family.

The lender then files a deficiency judgment for the difference between the selling price and the amount they're owed.

Were picking it up for 135k hes going to carry 35 k for interest only payments at 11% with an 18 month balloon.

"Investors are allowed to obtain 203(k) insured loans with 85 percent loan-to-value financing."