If you are buying at a forcclosure auction you have NO idea of the condition of the house and you are not neccesarily getting free and clear title.

Let me take a stab at clearing some of this up.P = PrincipleI = InterestT = Taxes (Property taxes only)I = InsuranceIt is usually referred to as such because of residential owner-occupied (OO) property, it is common for the bank to make you keep an escrow account with them that includes TI.

A typical contract says you get free and clear title so those liens are the sellers problem.

Most of the profit is made at this point.While we cannot force them to of course, we need to be absolutely clear at the start that this is the purpose of the strategy.We are considering setting up a mortgage broker to sort of 'pre-qualify' the rent buyer at the start so that if all things remain relatively equal they know that they will be able to qualify for a loan at the end of the option period.

We currently own (free and clear), (2) 1-1/4 acre adjoining parcels in a growing, upscale, residential, neighborhood 20 miles north of Phoenix.

Sorry to seem so dense, but I know I only have one shot at starting out right and I want to be perfectly clear.

If I have records of permits and inspections I'm in the clear, right?

Sources are credit bureaus.Here are some of the leadsAbsenteeFree & Clear-high equityPre NOD-30,60,90 days behind on payments.Distressed peopertiesDelinquent taxeslet me know if I can help you. email me..thanks!

If you are certain, get it under contract for said $425,000Make sure you contact a GOOD investor friendly title company that will allow you to double close, or simultaneous close.You then write another purchase agreement from you as the seller, and the new buyer for $500,000Once title clears you go to do your double closing.The only issues is how is the new buyer going to finance the house?

That CSB chart lays it out quite clearly -- 2010 and 2011 will be disastrous - particularly in the case of option ARMs.