So when the original holder of the mortgage bids does he then have to actually pay out money if no one else out bids him or is he just setting the bid?

But I will let you know what I know.If the property was an investment property, then the mortgage holder can send a 1099-C form which means you need to pay the taxes on the difference of the mortgage balance and the shortsale amount.

Do I contact countrywide, the holder of our mortgage?

I would require the sellers of the toxic mortgages to send out "Good Bye" Letters to each payer and attempt to get estoppels.From there you need to send out letters introducing yourselves as the new note holder.

Can I act like a bank and do an escrow account to ensure they get paid, or should I keep enough coverage for my mortagage holder, and make them provide me with proof of insurance as part of the note they will have with me?

More importantly, if there is a second-place lien-holder on the property (like a HELOC or second mortgage), you'll also have to negotiate the second and get agreement on the deal from that lien-holder.Who is doing the bank negotiations?

To all of you Advanta card holders: Today is the last day you can charge you card so go ahead and splurge...I know I did.

If you have a mortgage, the mortgage holder typically collects the taxes (and insurance) each month, then pays these bills when they come due.

Under Code Section 6323, the holder of a security interest (including a mortgagee or pledgee) is protected against a general tax lien if, before the IRS files notice of lien, the security interest is in existence, even if it came into existence after the tax lien arose.

Also you can obtain insider information performing BPO's for lien holders preparing to foreclose.