Over the past week along we received over $400M in defaulted fix and flip loans from flippers who were getting 90% acquisition and 100% renovation and the properties are 20% underwater. 

@Kris KempeWith $30k in arrears there is probably little to no equity so you would be better off just buying it outright and trying to flip it or wholesaling it - that again is if they are not underwater in the deal.What do they owe and how much is it worth ?

@Mario CastellanosBIG assumption but if accurate it means the property is under water meaning they owe more money on the property than it is worthThey would not be able to sell it without lender permission essentially.

If its under water Also who was servicing the loan and what state is it in.

Most of them are in a flood zone, but they didn't flood back in 1979 when most of the city was under water.  

I ended up investing in 3 deals with Western Wealth Capital in 2021. 1 is underwater and they couldnt raise sufficient funds for capital call. 

@Jonathan B.On a reverse mortgage no, but if it’s going to foreclosure then it’s typically because it’s upside down / under water or there is no heirs.You could call the attorney and ask if they will let you know what the opening bid or payoff is on the property or do a case search on the county website and see the complaint as that will typically tell you the amount.

Rehab costs, holding costs, and the ARV will be the largest cash eaters or cash producers with this deal.If you underestimated the rehab (both costs and time) and overestimated the ARV, you could be underwater very quickly. 

In fact two week ago I tried reasoning with a brainwashed Pace Morby follower in these forums who stated he would  happily complete a seller finance deal for more than FMV value, effectively putting him under water if he could acquire the property without using any of his money and the property cash flowed.

I checked with the state and the state will not allow utilities to be ran underwater to the property across the lake.