The HELOC can be used in the future for rehab expenses where required.It is a lot easier, and perfectly legal, to get the HELOC while the home is owner-occupied and then actually draw on it later when the home is not owner occupied.

They may take a subsequent writedown after sale depending in the net deficiency and, might even take another one after they sell it on the open market, depending on the net deficiency (If there is one).* To the one thing you heard right, correct, if there is a 3rd party bid above and beyond total debt owed, any overage after the debt owed, fees and costs and any other liens behind the foreclosing entity is paid, it goes back to the original homeowner/borrower.* No one bought the note at the foreclosure sale.

If so what should it be to purchase the property as much below market value as possible or should I just offer to Pay the taxes and draw up a contract with them?

http://www.biggerpockets.com/forums/517/topics/217726-118-500-property-for-sale-with-a-tenant-buyer-contract-in-place-for-139-900---3-year-term---get-in-with-20-down-around-25k-with-closing-costsand this was my first post, I thought it was not drawing attention because of the title, but I got more views on this one then the second post above: http://www.biggerpockets.com/forums/517/topics/216714-passive-income-producing-property-for-sale-with-equity-arizonaThank you in advance!

The title company had to ask around for an attorney that would draw up the right paperwork.

In some counties you have to pay the taxes each subsequent year brefore you can foreclose - in some counties you don't but if there is an older lien, that lien holder can foreclose first.

As @Jason Dillard stated, there is no case law on this yet and yes, I think everyone intelligent realizes they're aching for someone to make an example of to get it on the books so it can then be replayed and rehashed in every subsequent case nationwide.Ultimately, Dodd-Frank is un-Constitutional, communism at its finest and serves no legitimate purpose.

Will a blog and/or Facebook page help to draw those looking to invest with me?

But on the positive side, I inherited it with great, stable tenants, and it subsequently appraised at 30% more than what I paid for it.If you feel dirty prospecting for deals, then find deals another way.

You will probably have to purchase with their line of credit where there will be points to draw down as well as higher interest rates.