Well, I know one way it can happen....Back in my old home state, when the property taxes went unpaid, the local government had the option to "revert" the land to the state of Michigan.

But with a 400k government lien on it, it sounds like disposal of the property is going to be complicated.

Let's open this up even bigger...take a look at this article...http://www.freddiemac.com/news/blog/ed_haldeman/20100927_fighting_mortgage_fraud.htmlOur lovely quasi government entity... and now our tax money shoulders...Read it...And you'll see this...Freddie Mac’s article is no exception.

They are correct in that the government has put this in to place in order to "help" new homeowners get a good deal, at the expense of the financial institution truley getting it's best price for a home.

Originally posted by James Martin:Investors may use 75% of anticipated rent based on appraiser's estimate to offset against the subject property monthly payment.That depends on which idiot you speak to at BofA (they administrate the VA Vendee Finance program for the government).

They borrow from the Fed and buy treasuries, and effectively get free money from the government, risk free.

Finally, he advised i buy a house by taking advantage of 2 separate government programs (i was making less than $35,000 at the time which to the Fed made me poor).

I am not sure what that will do, other than make me feel better, as I have done the same before and the government REO don't seem to care a whole lot when their rules are broken.

Usually the government seizes it and ends up in a government auction at some point.

There must always be reasons behind the rules governing group's behavior.So here I am.