The tenant can claim that a good plumber would have completed the repair in a timely fashion and since the Landlord hired a bad plumber they were unable to use their home for another week.From what I know of the situation, it appears that the tenant is not exactly reasonable (like you would be for the same situation in your home) - they think dust on furniture is "damage" - so they could claim a bunch of things and it will be up to the Landlord to defend against the claims.

This way of handling rental loss is supposed to be more favorable for the borrower, but I have not really run any numbers to verify it.  

This works in your favor two fold.

Mike there are the Federal laws which I am talking about and then on top of that tenant laws that vary by state.As you know California is very heavy in favor of the tenant.So it takes a long time to foreclose.In Georgia we have no post redemption rights after the sale and to foreclose the lender simply has to send a letter giving 30 days notice in the newspaper.That doesn't mean the owner won't prolong by filing BK,trying a trial loan mod,short sale,etc.

I am in favor of forcing the banks to mark their assets to market so we can devour the weak entities and move on with life.

HAFA is a government run short sale program and it favors the lenders.

Originally posted by Jake Kucheck: Now if the HOA were to start negotiating on mere delinquencies, I would agree with you 100%.In theory, I completely agree...The problem comes down to whether or not the members of the HOA (the homeowners) would have to -- or even have the option to -- vote on the decision to reduce the fees.If the homeowners got wind of the fact that they could appeal to the board and potentially get a hardship reduction in HOA payments, you could imagine a large group of homeowners banding together to request (and then vote in favor of) these hardship reductions.On what grounds could the board consider your particular situation (your short sale house) without considering every other request they get from a homeowner who claims to be in financial straits?

tenant also knew his tenant laws as he knew exactly how much percentage wise he would have to pay for the interiors repaint. and he shows up with a camera to take pictures, im like dude are you kidding me, you wreck the home and now you wanna take pics. any judge would vote in my favor if he saw the pics, in my opinion. sorry to rant, hope this all makes sense as i brainstorm everything out of my mind !!

I could be wrong as well, but the recent past of the banks seems to favor my opinion.

I'm hoping to make the numbers work in true biggerpockets fashion like you pros... well, as close as I can get?