When Treasury Secretary Henry Paulson first asked for $700 billion to fund the Troubled Asset Relief Program the intent was to use the proceeds to relieve banks of toxic assets, making it easier for them to attract private capital.

It would also be a good little long-term rental, but I would need to cash out my private lender and would likely run into snags when attempting a cash out refi (obviously).My understanding is that lenders typically have thresholds ($50K, 75K, 100K, etc.) that they will not normally go below.

Private money?

Do you have to double close, first using private or hard money, and then sell to the end buyer?

One property is in Alabama (my private residence) and another is located in Florida (second home).My regular (and I say 'regular' mortgage broker, because he has already did two for me in Alabama and never steered me wrong) broker can do my Alabama home.

It's also likely true that the banks don't like the fact that individuals have the opportunity to profit (sometimes greatly) off of their non-performing assets, and they are trying to limit the ability of private citizens gaining on their loss.

If you are worried about security, look at who actually took out terrorists on 9/11 - it was private citizens.

The local schools are great so its cheaper than living within the city and paying for private schools.

Private money?

The only way it will work is a short sale, and I'm open to that, but then i'd have to use about every private lender resource I have for this one deal.