Not sure how you will be conducting business going forward.

the world of commercial real estate is in many ways not an extension of residential real estate; it is a completely different investment animal.The are commercial brokers that will represent you on the buy side, but they want alot more confidence that you have the ability to close a transaction than residential brokers do.

At the end of 45 days the borrower asks for an 45 day extension to come up with your workout plan, usually automatically granted by the bankruptcy court.

Your capital gained is always less expenses that you can prove - those are the costs associated with doing business, and the gain stems from conducting that business.

I invest extensively in Genesee County.

It will look like you ran out of liquidity/cash and you are supplementing your debt service by applying or getting new extensions of credit.

(A book could be written about this aspect, but I'll make it brief I promise) An individual lender will have more scrutiny in any civil case, individuals will need to show that what they did was fair and reasonable, it's assumed that banks conduct business within legal requirements.Processing a loan is CYA for the lender and indicates a degree of fairness and safty for the borrower.

In our market I believe investing in REO's and conducting shortsale deals have been hot, correct me if im wrong.

While in some areas any fine may not be a big deal, being forever bared from conducting any business with HUD or with any HUD related program can be a long term loss.

I think the best option for Karin is to conduct find an investor to borrow the money from and do the rehab.Loan: $90,000Points: $3,600Interest: $6,750 (15% for 6 months)Current Mortgage Payments $3600 ( Rehab: $80,000Holding Cost $1800 ($300/mo for 6 months)Total Spent: $95,750Cash needed $5,750BACKENDSelling price: $279,000 Commissions: $16,740 Closing costs: $5,580 Net from sale: $256,680 Loan payoff: $215,000 Cash invested: $5,750 Profit: $39,530