I also read somewhere that you could have a good mortgage broker work with them to bring their credit up so they could end up buying the property, if you wanted to.I'd want everyone to come out ok if I were to do this type of investing.

It seems most people believe painting it will bring a higher quality tenant and/or help get it rented faster, which was my first thought as well.

Let them bring you the deals and analyze them as you go until you find properties worth buying.

Even if there are banks doing this,my guess is this this property is too risky to buy ( I am buying for a rental investment property), because this same issue will apply to all other properties in that community and will bring the price of every property in that community by a large amount (unless the homeowners get together and want to do something about it). let me know if I think right

And convenient for me as a lender because if the borrower defaults, I can put insurance in the lender's entity name with one phone call or email.They occasionally have growing pains, but so far, they have solved any problems once I bring it to their attention.

Build your network, make those connections, and build a reputation as someone who can make deals happen and you'll find that people bring deals your way.

If its a rental you can move it on the back-end probably a lot quicker to an investor than waiting around for a qualified FHA buyer to get a mortgage.Which brings me to my next point.

The coastline will always bring a price premium, but numbers just don't pencil like they do in parts of Riverside county... where prices are closer to "bottom" anyway.

If you could get the lender to agree to a short sale, even if you have to accept a note for part of the shortage or bring cash to closing, may be the escape that costs you the least.I seriously doubt that holding onto this for three years and continuing to take your monthly loss will result in a net improvement.

In Colorado the title company does not allow closing until the tax lien expires (bank owned properties), if you purchase with a tax lien in place you can wait out the expiration (I believe typically 120 days), if you bring it to attention they might settle with you, although that means paying at least some of it.