Originally posted by @Matt Groth:I am far from a permabull, but how many mortgages in forbearance are underwater?

If our rental in cleveland heights drops 20% (which i believe was more than the great recession drop in 2007 and I don't think we see a drop that large) we still wouldn't be under water because we bought so cheap. 

I was underwater on my mortgage but I had to move due to my job.  

It is so easy to get under water with a renovation that goes awry, and then add in the increasing interest rates on credit cards and HELOCs…nice to see a business recommendation.  

OKAY,  you increased your equity position and thus the LTV went way down.So now you have stagnate funds tied up in the property and the new loan payment increases the cash flow.That may well be a very conservative play if you're positive that rates will go thru the roof, but also may have put you underwater if there's a housing crash and prices go into the toilet.IMO, staying liquid in times of uncertainty allows more flexibility.The investors axiom is preserve cash and use OPM whenever possible.

I'd probably go with doing 25-30% down over all cash so that protects you from being underwater if the market takes a minor correction..

But—- If the places are underwater etc. or the ability to add value/increase equity is not there thats when I would utilize the Land Trust.

If the pandemic had not happened many of those people would still be under water on their properties!  

Is it a property that you are underwater on?  

It's 1.5 acres but like 1.25 of it is underwater.