Getting paid back too early before you've had a chance to collect interest is a known risk, just like the known risk of default - which will occur on some X% of mortgages. 

Maybe look at mortgage defaults or divorced absentee.

No mortgage, no risk of default. 3. economic risk - your geographic location either doesn't have a diverse set of jobs, or the jobs are susceptible to economic recession.

I assume that any deal can be made fannie/freddie by default, until I feel that I've been proven otherwise.

What I'm saying though is regardless of who is holding the debt IF we get large scale defaults whom ever is holding that debt will most likely have to sell for liquidity.  

lol (winner by default).So come on out of the wood works.

I always think, "Oh no I don't want to default!" 

@Edison ReisYour post is unclear in that banks generally shill two types of insurance, the first being the kind of CMHC mortgage insurance discussed above to insure the banks in case you default.

@Ricky Butler my guess is that the investor who "Bought" it in 2012 defaulted on his contract and has no further rights in the property.

RE = hedge to inflation, debt becomes cheaper with older dollars.Cash = hedge to deflation, we can acquire more assets.Gold, which I love, because I'm an Austrian believer, really doesn't hold as much necessity now.The good news is, if you ever hear the mainstream media throwing the "D" word around, holy smokes things are really bad, or it's a smoke screen for something else.The even better news is that the American economic nightmare is deflation, because that would force them to actually default, or take up "Helicopter Ben" Bernanke on his last ditch effort of saving a Keynesian economy.