Another point as to why a bank would be holding these nonperforming assets and not foreclosing is the risk exposure that is opened up to having an REO on the books, and therefore the official owner and needing to do keep up with property preservation.

It depends on where you are, I would learn the process of doing no money down deals so you can preserve your funds for fix up when you need it.

They are designed for exactly what you want to do: preserve capital and beat inflation.  

You have to decide at that point if you want to make the payments for her to preserve the equity.  

Preserving the 1950's solid wood doors, original back door, stained glass window and keeping as much of the original charm as possible, blending the fixtures and appliances that my previous clients had intended to use, and finally adding a little of my own flare with calming paint tones, modern flooring, and mismatched metal hardware.

Investing with proven operators, in high growth markets, conservative underwriting and strong capital reserves to mention a few.I would recommend speaking to your CPA and financial advisor, however this strategy could yield:- tax free growth in the IBC- tax free income in the IBC- having your $ work in multiple ways- income growth thru the spread- preservation of capital- tax efficient passive income- much better returns than the 401k on its own

He may just be thinking about Wealth preservation and US real estate in his circles may be view as a store of value. 

@Tom Wagner   I'm obviously biased since I run an OZ fund, but I agree that it's a powerful tool for wealth preservation and creation.

I have to know information about them to see where they are at in life for age, working for someone or owning a business, and what type of cycle (wealth creation, wealth stabilization, wealth preservation).So you can take what I say here in a general view and not a specific view.People not experts on the space can have a skewed view of what they believe.Retail not going from bad to worse.

For a small investor (ie not planning to take over the condo association) stay away from HOAs where one person controls a number, both to preserve your standing to protect your asset and to BE ABLE TO SELL TO OWNER OCCUPANTS.