While an extra $200 a month above your current rent+car payments is certainly achievable for a financially-disciplined person, your actual monthly expenses may be far greater than $2,155.When calculating your monthly housing expense, you also need to account for some of the following items that, as a renter, you do not budget-for, in addition to the $2,155 "base" loan payment:HOA (these can sometimes be several 100's per month, especially in condos)Homeowners' Insurance (this will be several 100's per year)Utilities (some may be covered by your condo HOA)Property Tax (if you don't save for this, you'll be scrambling for cash when the bill arrives)Mortgage Insurance (might be required depending on the size of your down payment) The above factors may be why your bank/lender is only qualifying you for a $1500 per month loan; though you can afford $2200 per month in aggregate, the bank does not want the HOA or County of LA to lien the property due to delinquent HOA payments or Property Tax payments, both of which are senior to the Bank's Paper.

If there is a massive casualty, you get the insurance proceeds, not the taxpayer.

I see a lot of winners.1) Original homeowner-Finds someone who will likely pay the mortgage which they are about to either short sale, let go to foreclosure or at the very least have to spend a lot of money they don't have to repair the house and/or for selling commissions.2) Banks- don't have to foreclose on a home and have a mortgage being paid down.3) Federal Taxpayers- Lessen chances of a bank being bailed out once again!

A lot of lenders will look negative on someone who defaults on student loans or settles for less than what they owe, which means you left the taxpayers with the balance.

There are very few ways to make money without paying taxes. 1031 just defers tax payment (which is very nice, but not tax-free).

Tax liens don't just get processed and sold overnight; I'd think several months or years passed between the last property tax payment and the sale of the house to you.

Recently the property that had I had up for collateral on the loan was going up for tax sale and I made and agreement that I would pay the back taxes on the property and one other property if he would let me close on the house by putting my interest and tax payment towards the payment of the home.

Ok - while this is sad and is something that really angers me as a taxpayer, I've got to say I'm not surprised.

Thanks Ibrahim,I actually exchanged emails with him a while back but it seems he only does foreclosures.. guess he's busy.I read his great book which has Affidavit for Subsequent Tax Payments, however when I brought this forward to the Tax Collector (after recording the Tax Sale at County) she had no idea how to add a subsequent water lien to the original Tax Sale.This is in Bergen County.

Often these records are available online these days.Lookup the property, and search for the taxpayers info in the database.