There is no guarantee that the flipper will be able to refinance.

No guarantees, but maybe you can keep the appraiser from choosing two REOs and a short sale as comps.

:wink: In all seriousness, my faith has one guarantee for me and my attitude and outlook has another guarantee.

If so, then look here:http://www.biggerpockets.com/bank-reo.htmlIt might take some time for the property to show up on those lists; given your statements, you'll probably want to check back to their website frequently.Lastly, even if it became REO, there is no guarantee that you will be able to buy it unless you are willing to grossly overpay.

It is unlikely that your LLC was able to obtain a loan all by itself so I am guessing you had to personally guarantee the note.

If you want a guaranteed legal opinion, consult a lawyer.

You could still guarantee the note in any capacity.

I have a good job, for now, of course, no guarantees, worse case I have to pay taxes on the amount withdrawn and a 10% penalty if I lose my job and did not pay it back, so there is some risk but seems lower than the HELOC risk.

If, in this case, they might be moving against the personal guarantee since it is in default.

Now I'm sure they have guidelines, and if your expenses and depreciation are outside their guidelines, they will look more closely.I will argue a 1% property is almost guaranteed to be a money loser.