It could be that the local authority will force the improvements to be taken out and the building converted back to the original state.

Loan loss reserves is one term for this.With a mortgage (or trust deed) they lender is forced to increase the capital required around the 90 day market (90 days past due).REO property also have a capital reserve set aside.

It is on an ARM.

I would hate to screw something up and have to bring in a professional after I already spent all the time/energy.I learned by screwing things up; materials are expensive so you are forced to learn fast or quit trying.

Now it is dirt cheap, but by this time, the property is usually so bad that no one wants it and it needs a serious overhaul, like an angry owner forced into foreclosure and no one wants it so it ends up here.The best location is pre-foreclosure as you get the best of the properties available and everyone wins, owner, bank, gov, and you.

(side note: don't have kids with jerks with control problems, especially when they can come up with the funds to sue you as the great american judicial system has no qualification process for someone with a biological tie to come after your kids, even completely unfoundedly...and you will be forced to spend a GREAT deal of money to deal with that mess.

I'm a Quality Assurance Evaluator for the Air Force by day and an obsessed REI beginner by night.

I would say that even when armed with all the facts, there can still be fear.

Or you look for a property where you can personally force up the value (change of use, upgrade the condition, etc).

She may have to file for a forced sale.