IRS calls this a "Bargain Sale" and it is perfectly legitimate if you follow the rules.

It's good to have that security, and a home is a perfectly good place to act as a depository for your savings.If your mortgage is paid off, there is a very good chance that you have sterling credit and a very good debt to income ratio.

I found the perfect building, but the banks are not into loaning me money for the store AND building.

All of which are perfectly legal means.

I'm sorry, but you're contradicting yourself, if any loan is secured by real estate with a perfect security interest, it is a mortgage.Banks do not make non-owner occupied mortgages at 95% to God or any mortal.

To me that is the perfect situation for you both, assuming all of the other pieces are covered.

While you can still get a good deal, it is the perfect storm for a few people to make some really bad decisions if they don't do their research before they buy. 

And for those who still owe more on these homes than they are worth, selling is also not an option.With banks tightening the screws even tighter on mortgage lending this year due to increased regulations, seems like perfect timing for the HAMP Program to expire.

I've sold some properties that were perfectly good properties but be too far away, or too old, or too low return or too something else.

A foreclosure can be caused by many event, including buying at the top of the market and realizing your way underwater.I tell everyone before screening I'm not looking for perfect credit, if they had perfect credit they would be buying, but I'm looking for people that pay their bills on time, maybe have had a hickup or two, but generally pay everything they owe every month.If someone has something very serious on thier credit, they normally tell me then and save us both the hassle of declining them.