And the third kind is income replacement insurance, so that if we would have an insurable claim that does damage the insurance company would reimburse us for the loss of our income.

Are they hard/impossible to rent so the current owners are trying to cash them out at such loss?

It was a different time, a nation of Americans horrified, all with a sense of a some personal loss.

@Graham: Try to find out from the agent why they are selling (relocation, job loss, upgrading, downsizing), what's their intent after they sell.

Collecting on an unsecured debt is not easy and losses can incur, as such, most debt related to real property is secured by the appropriate security instrument (mortgage/dot) and that debt is evidenced by the Promissory Note which serves as a sort of I.O.U. for what was borrowed and how it get's paid back.3.

They didn't have a lease; but in order to get rid of someone living in YOUR home you have to treat them like a tenant and serve them a Termination of Tenancy.Check your State Laws and City Ordinces for help.Just food for thought in case you need to go this route.Nancy Neville

All of us will end up paying a lot more for any insurance over the next few years because, unfortunately, the insurance companies are not charities- they have to make up those losses.

The investor on the note can't claim the loss on the note, without the corresponding 1099.

I am dealing with a listing agent locally that handles mostly short sales, one of her fees that is paid by the buyer is a $4k loss mitigation fee.

If, however, they are having a strong quarter/year and know that they will eventually take the hit anyway, they may want to use the loss to offset some of the gains.