Other instances they stopped paying and the fees and interest collected goes up quickly including legal etc.I hold the note on a property that the unpaid principle balance is $65k but it has $85k in late payments, fees etc.

THE QUESTIONS:Should Johnny get a hard money loan to purchase the home and make repairs, then re-fi 6months later to access the equity and invest?

Run away from this deal stop trying to justify wasting money.

Look at everything through the lens of "what will stop me from building after I close on the land?" 

Once you get started it is hard to stop.  

I'll give my thoughtsThey couldn't really afford it because a through background check was not doneJob LossJob relocationEviction - they stopped paying because ...They need a bidder place due to new baby or family member that comes to live with themThey get put in jailThey need a cheaper placeThey want a shorter commute to workDivorceDeath (in family or one of tenants)You raised the rent too muchPerceived or actual problem with the houseHigh Utilities at your house

Hudson, Auction.com, Xome, HudHomeStore.com, RealtyBid, Hubzu, etc.But there are always bigger players like us that get access to them before they are listed anywhere, so you're picking through leftovers via any of these methods.For the most part, "listed REOs" is a dead market being bid up by every newbie so there aren't many deals to be found there. 

It’s never stopped a transaction but it’s a definite headache and head-scratcher not knowing when these arbitrary guidelines apply.  

I need full access to the RI listings. 

I’m currently in the process of a Cash Out Refinance with a local bank to gain access to the equity with the intent buy more rental properties.