A good rule for life is to assume that everyone is out for himself.

You should also keep this letter for future reference, since things in life have a tendency to change unexpectedly.

The Bank will not listen to your case of the cost of rehab.I don't believe all this, or else you guys wouldn't be getting any deals, so can someone shed some light on what and how you negotiate under different buying circumstances.In a real life instance, today, my realator called on a short sell for 75k and the lister said she presented an offer to the bank at 55 and they came back at 68.

Unfortunately, if government lets the whole system just collapse--which is what you're suggesting above--the pain will be acute to the entire nation and the world.So certain priorities must be chosen and the priority is for owner occupant properties--not entrepreneurial purchases of real estate.Here is where your ability to put your life in perspective comes in.

Remember the old joke that asked what we would do if there was a medical procedure that extended anyone's life by 20 years but cost a million dollars?

I'm actually rather concerned for the first time in my investing life.

Also, homeowners in default vacate their houses for any reason they see fit...mostly because they are done caring about the property...they have to leave anyways, why not move on with their life before they bank evicts them.It is also no concern of the investor why the homeowner chooses to move out.If you can swing it timing wise it is a good deal for several reasons...the house doesn't sit vacant....you have somebody living in it that knows the deal (you disclose to them exactly what is happening and charge them a monthly rent below market value)...they can show the house for you if need be...the utilities get paid...and the investor can make some positive cash flow while negotiating...let's stop pretending this is hurting anybody...and most of all...dont make me think for a second we are concerned about the lender losing money because the investor is profiting....its the homeowner in default on the hook and nobody else.

Believe me, if Countrywide has already accepted your sales price and costs, they will take a few thousand less but it will just take more time--3 weeks is nothing in the life of a short sale transaction.

"I now owe $80k on this double via a interest only variable rate LOC when the while the property is probably worth no more than $35k".Regardless of what is 'right and wrong' when it comes down to investor values and the economy, if this guy is 100% LTV on ALL his properties and the above statement is true, it's going to be quite a few years before he has enough equity to sell this property and repay the entire balance.That, of course, is assuming that negative cash flow is not a current issue with his holdings.I apologize for jumping the gun and saying bail, but I have spoken with so many people in foreclosure over the years that let their situation completely ruin every facet of their life.

Ramen noodles is cheap with a long shelf life :cool: This could get ugly.