A local bank suddenly increased the rates of several loans, resulting in over $40,000 increase of interest annually.when I found out, I asked for the reason.

This story probably explains something that happened when I suddenly got a credit limit reduction on my Wells Fargo card .

Then it was suddenly frozen one morning and, after an email to the address zillow provided, a voice message to the appropriate phone number, and a form filled out with exactly all the information they request, we get no response for almost a full business day.  

Those who are most successful buying SFH's buy in markets that experience a sudden  appreciation event/spike in home ownership  creating an end buyer market that no longer consists primarily of investors.

They suddenly lost my insurance information and now said couldn't collect my monthly mortgage. 

So any notion of a SURGE of inventory is simply near to impossible.

Detroit is not what most investors consider an appreciation market. 2 years of appreciation during a time period when every other market appreciated also, following decades of up and down with extra down doesn't suddenly make it an appreciation market.

Now as a Banker I understand you will have a shorter pay off but you also have to take into consideration market declines.If the market declines in any way or if your area suddenly gets hit with a higher than normal foreclosure/short sale values can drop.

Checked with a CPA, it was odd because the loan officers / mortgage lenders didn't know I could do this until a CPA verified, then all of a sudden, they said oh yes you can do it..

What is happening on that day that they will suddenly have the money?