There was a recent case in the Boulder area where neighbors did take a section of a property under this law. 

I don't know if this is the case in HI or with your policy, but I have seem some insurance policies in my day that have a "waiting period" for catastrophic coverage.

And, you're correct, we don't have enough information to know what's going on which is usually the case in forums and our speculations as to what might be going on.

A few potential reasons:- Because people don't know how to run numbers and how to make sure they are profiting on a rental property, i.e. major lack of education- Some live in markets where they don't think there is any way to get better (should not be the case in Minnesota)- Some are banking on appreciation (should happen in LA, not Minnesota)- As I did, a lot of people grow up just hearing that if they own properties they are good.

I have calculated 10% in the property management though just in case in my numbers.Purchase price would be at about 55K.

Is this the case in most other states?

I know this because we just locked up 2,500 SFR's in FL (in Orlando, to be specific) that are past the redemption period (bank did not pay delinquent HOA dues), and the same law group that won the case in Nevada in front of the Supreme Court (see link below) is currently handling the conversion into Warranty Deeds.

Usually the trustee is an attorney, they will be ticked at 1:59 as they may have difficulty in charging for the sale.As to bidding, if you show up late, yes they can bid, it's a public sale, they can bid up what ever and then claim the overage as equity beyond the amounts owed.It would be an unusual case in reality as they should be able to stop the sale earlier.Filing any intent under ant state law is for redemption rights, there is generally a time limit and a bond may be required.

@Ned Carey @Chris Drury As is the case in almost every tax situation, it depends.

That may not be the case in a few years.I typically recommend "loading up" on as much FIXED RATE mortgage financing as you can so you build your real estate portfolio using this virtually "free" capital.Also, if you buy "all cash" and try refinancing later, you are very likely to have a lower LTV on the refinance (less cash), and a higher interest rate.Hope that helps.