These letters requested that I call the mortgage department of the credit union ASAP in order to discuss "bringing my account current" and "options to avoid foreclosure".

I'm thinking out loud again, but this time I have know ideas how I would go about it and that's why I'm asking you.If I put an ad to find a pre-foreclosure and get someone that is a few payments behind and owe what the house is worth retail, how would I go about assuming the loan.

Are they likely to accept less on a cash offer? Ive purchased some HUDs in the past but always dealt with financing. I hear a lot of foks say they will accept 85% of asking price pretty often. Would I be better to go ...

Bidding as foreclosure sale can give biggest discount, but since title insurance is unavailable and thorough inspection of property not possible, much greater risk is assumed.Being new, I would use a Realtor, get a long enough due diligence period, and possibly purchase consultation time with a real estate consultant - (not a guru).

If It's real old you might have clay pipe or galvanized going to the street and have galvanized inside of the property.This goes back to did he just tie into old stuff in the wall for new kitchen and bath or actually fix everything comment.As far as not paying rent it is a DISEASE.The tenants all talk and when they say they haven't paid rent the rumors start to swirl.Maybe the owner doesn't care anymore,maybe management doesn't care,maybe the owner is in foreclosure,maybe a bank took it over etc.More of the tenants will not pay and a pattern will develop.This is why it is critical to always file for eviction no matter what.The tenant can always pay and stop the process.If you rule with an iron fist the tenants know and are conditioned to pay the rent.Some are like children always testing you to see what they can get away with.This is why if you don't do things the same way all the time it can send mixed messages to them.It's that one moment of weakness that they take advantage of you.

The appraiser based it on three foreclosures, closest was about 2 miles away, even though he also had two actual sales very close to me at $88,000 and $93,000.

Some general feedback on your list:Copy of Collateral File - mortgage/deed of trust, note, modifications, forbearance, title policy, assignment chain (if not recorded)Copy of Credit File - Origination documents - includes 1003, disclosures, credit reports and HUD - these are not always present in institutional files, their absence does not negative your enforcement capacity.Copy of Servicing File - payment history, servicing notes, etcCopy of Legal File - foreclosure, bankruptcy (if present)Property value through a BPO or similar report will be your responsibility.

Now the 1st loan is in foreclosure with the auction in about three months.Nothing was mailed to John; all notices were mailed to the subject property.

I can see both sides, and for families that are deep underwater, the pain of a foreclosure or short sale may be acceptable vs. decades of high payments.But just by itself, being underwater isn't really a reason to walk away.

My business is buying vacant land, cheap through tax lien foreclosure and then selling it.