Exit strategy: I personally work with my clients to improve their credit, settle and outstanding balances and ultimately get them qualified to purchase these homes.

In recap I like mailing a series of professional letters a series of postcards and a series of "Mary Letters" FOR SALE SIGNS, MAGIZINES, GORILLA ADVERTSING, TRAILERS, ETC. round out the balance, with that said, and although we ask every caller how they have heard about us, don't believe for a moment that just because of the limited response rate that you shouldn't market this way.

I get out completely whole, loan balance of about $127K.The cash cow part that I'll miss, in addition to the 9 1/2% that I was making was the $109/month in late charges.

Keep in mind these mortgages are much higher balances, have a higher percentage of non owner occupied AND reset MUCH harder than for example a 2/28 ARM.

If for some reason you find an in to purchase directly, expect to pay more because all the bank will have to go by is the fcl sale bid, or unpaid balance.

I used to think foreclosure was better and that it wasn't fair for the lender to modify the balance or interest rate for some homeowners and not others.

:wowie: If, in Australia, I default on a mortgage and the bank sells the property for less than the outstanding balance, the bank could (and generally would) pursue me for the remainder for years to come. eg If I default and my mortgage is $250K, but they sell my home for only $200K, I have to keep paying the bank until they get their $50K back.

Not the balance sheet.

Therefore, the Fed and the Treasury did the only thing they knew and utilized the taxpayers' balance sheet to be the lender of last resort for banks (Keynesian economics).

Once the banks balance sheets have the right values for the "assets", send Sheila Bair out to take the bad ones down.