Be cautious of not locking yourself into a short sale contract for too long.The key will be if your are is trending down in value or is starting to go up.If you submit a short sale offer and it takes 5 months to close and values have fallen 8% percent since then your deal isn't as great anymore.This is why I like REO better.

The ARM should have a 1-2% annual reset limt and a life-time cap less than your conservatively calculated net cap rate for your property; a common cap is 6% higher than the current "index+margin" that would be in effect.

With O/O I can get in for three percent down and I can get a better interest rate.

If they pay their way with cash flow, but even increase to 50% of their 3 years ago value, we could sell for a 2-3 hundred percent increase!

Man is no more causing current climate fluctuations today than man caused climate fluctuations fifty million years ago.

You will have no gain or loss on the hedge but your mortgage will adjust up a percent and you will pay more interest costs so you will be a net loser.If you choose the other strategy of selling the closest month and rolling often, your outcome is a little better but the same scenario happens on a smaller scale each rollover plus you have greater transaction costs.

The risk of notes getting called will rise big-time if interest rates jump 5 or so percent.

previously it worked as so$1k a month rent so they would take 12 months and divide it by 8% equalling $960 paid to them once they placed a tenant (ok fine, most of them do it like that anyways) then, they would take out their 8% percent every month equalling $80 rightNOW they're not only taking out the $960 but also the $80 times 12 months up front totally $1,920 for a property that rents at $1000.00 a monthI think b/c they're having so many financial problems that this will only increase their issues and then to top it off, who's to say they won't continue to suck at being a PM company now that they've been paid up front

This property is in texas i'm not sure how the owner got himself into this trouble but he has a great 1st mortgage. 5,200,000 @ 5.38 percent for 30 years and 99% occupancy.he's losing 20k per yearhe wants me to assume the loan at 250k + 50k assumption fee so for 300k i can have a property that is losing cash.this property has great upside though his rents average 300 per month for his 278 units while market rents in the area for similar properties average 550 - 600.so do you guys think this is a good deal to move forward with?

The stats I have looked at showed that investor loan defaults were only 10% of the entire market share (give or take a percent or two).