Would you suggest advising the lender of the possible transaction before it takes place as to abide by the terms of the agreement between the loan holder and the lender?

If you are a long term holder for cashflow purposes, then you'd be better off doing what MikeOh does, and that's buying properties that will cash flow with no money down and that have a chunk of equity in them already.

That's true.But top earning real estate investors don't (usually never) wait for appreciation.Big RE profits are based on improvements, buying at discount, best use, selling at premiums and other profit possibilities.The graph of Growth of Stock vs. real estate doesn't apply toRE investors that don't prefer the "wait and hope" 'technique'.The graph of Growth of Stock vs. real estate does apply tolong term holders.

`(b) Purpose- The purpose of the HOPE for Homeowners Program is--`(1) to create an FHA program, participation in which is voluntary on the part of homeowners and existing loan holders to insure refinanced loans for distressed borrowers to support long-term, sustainable homeownership;`(2) to allow homeowners to avoid foreclosure by reducing the principle balance outstanding, and interest rate charged, on their mortgages;`(3) to help stabilize and provide confidence in mortgage markets by bringing transparency to the value of assets based on mortgage assets;`(4) to target mortgage assistance under this section to homeowners for their principal residence;`(5) to enhance the administrative capacity of the FHA to carry out its expanded role under the HOPE for Homeowners Program;`(6) to ensure the HOPE for Homeowners Program remains in effect only for as long as is necessary to provide stability to the housing market; and`(7) to provide servicers of delinquent mortgages with additional methods and approaches to avoid foreclosure.

Was hearing many 2nd position lien holders will sell their position off last minute thinking if the 1st forecloses they lose it all.

I'm selling a home that I own clear on contract in which I will be the lien holder/providing no bank financing to the buyer.

Banks are not expected to be real estate holders and this is discouraged, but some bad portfolios do end up turning to other real estate owned.

Of that 98K, how much should I offer the 2nd mortgage holder to settle it?

The government would make periodic capital injections by buying convertible preferred shares or warrants, ***meaning, we will be paid first if we can not save this thing*** Holders of the companies' common and preferred stock are ``very unlikely to come out of this at all happy,'' and the chief executive officers will be forced out, Frank said.

I plan on having the seller buy me out of my option and collect my fee as a lien holder at closing, have the money wired to my bank account, and never be at the closing.