We use it to determine if we should be going after the seller for a deficiency judgement or like the article mentions, a cash contribution or promisory note.

Then i subtract out a 1% state transfer tax and 6% seller contribution and other closing costs I don't know if it's worth it.

Discuss this with your lender ahead of time and get an idea of what they will and won't approve, and how much down payment you'll need.You may be able to get the selling bank to contribute 3% of the price toward your closing costs.Most REOs are nasty.

If not, you lose the option money.A lease option might work if you can get a good deal on a house you like now, but need some time to clean up your credit or save up enough for the down payment.OTOH, FHA loans require only 3.5% down payment and allow some seller contribution for closing costs.

Again, I really appreciate everyone's insight and contributions.

Jon, Fantastic information, appreciate your contributions here and on BP.Consider using the 50% rule and try to eliminate need to guess at what expenses will be.

I thought maybe I should contribute something to the original post...

His contributions to capital will eventually buy the company.

A person's Greed always has contributing factors.People take so many things for granted and won't miss it until it is taken away.

As stated earlier it's another excuse for the banks to harm the homeowners and make more money be getting the home back quicker throught the deed in lieu foreclosure.Here is a Msnbc’s Dylan Ratigan piece that is an indictment that the politicians are in bed with the banks. http://www.msnbc.msn.com/id/32450072/vp/36233217#36233217 If I was a politican and I was getting paid $355 million dollars in campaign contributions then I wonder what kind of legislation I would pass regardless of the interests of the American Citizen.I would educate all of the misinformed realtors and homeowners of the harm that HAFA will do to the homeowners and that they should just stick with doing regular short sales with good real estate investors.David H.