Obviously that is a bit extreme but just illustrates my point.The reason I ask about self managing is because of you wanting to be passive.

I appreciate the information and the illustration.

If your illustration is showing less than 85% cash value to premium at the end of the first year, the policy is not designed properly.

I am a doctoral student with: [list]little debt (car loan and 35k in student loans), little assets (3k in an index fund, 7k in a target retirement fund/Roth IRA, 1k in individual stocks, 5k in cash), little income (just my student stipend of less than $20,000/year and another $2-3000 from web design and illustrating jobs on the side), and a little family (wife and two kids).

I had an incident just a few minutes ago that illustrates why I carry my handgun at all times while I'm working.

ARM resets that more/less illustrates this point).

Your Nasdaq illustration does not apply to one individual investor, particularly a savy one.

It's full of tips and illustrations and takes you through every step of rehabbing homes from purchase to sale, as well as number crunching.

It would be rare for a lender to allow a sale for less than what is owed, but if they do they will need to release the lien and they may not be able to seek a judgment for remaining amounts due if they failed to attempt to get the full amount from the sale.The deal illustrated by Chris would be a great deal, but probably won't happen as the purchase price is less than the mortgage, a 150K home needing 20K in repairs would be about 70% of 130K as the rule of thumb or about 90-92K.

Simply illustrated, you as an REO buyer do not carry the disposition liabilities that are contained within the note.