However, the fact remains that the loan is not assumable, but no penalties, etc... are stipulated.  

Usually they are properties worth less than what it would take to pay off all remaining city liens, costs to bring to foreclosure and prior real estate tax liens that may be on the property.It's tough to "reinvest" when the auction is held only once a year and the leftover liens are picked through. 

@Daniel Sistofor me personally, I focus 85/90% on my primary investment objective and the remaining just reading through other posts to gain some knowledge.

I was wondering if say it was listed for 200 and I put 20% down the remaining about financed would be $160k.

Excerpt from:"America's mortgage-insurance giants are making bigger profits than before the crisis"From this month's Economist:  "The fact remains that both Fannie and Freddie have emerged from the financial crisis churning out more profits before tax than they ever have before (see chart).

Is there a way I can verify his remaining loan amount?

Consider this basic scenario and followup question:I want to purchase a property by borrowing 80% of the cost and have a partner/investor cover the remaining 20%. 

The only question that remains for me is whether this can all work together.

That’s twice the typical average yearly increase" and in the very next paragraph"available housing stock remains constrained by historical standards"I didn't bother to read the second page.

Ideally, a tax escrow payment has already been established on the account to help ensure taxes remain current going forward.Bob's approach will work if the borrower agrees to the large escrow payment.