Not saying appraisers are intentionally inaccurate (though there have been incidents of that), but that its impossible to know which of multiple available comps truly represent the market.I'd be extremely leery if a seller says "here's an appraisal that justifies my price".

I'm just trying to follow exactly how the numbers work I don't really know how the multiple mortgages work.Why does one sell a 140k note for 30k?

There can be a whole boatload of juriidictions (state, (multiple) counties, (multiple) cities, easement rightsholders (e.g. power company), traffic control authorities, etc.)

The way I understand the process, I'm going to find these pre-foreclosure homes and try to meet with the folks to inspect and get details, then calculate numbers from my perspective and perform due diligence on liens etc., and then try to get it under contract with "Me or Asignee" as the buyer and a small amount of earnest money.

I am currently focusing on multiple-unit properties that are in need of rehab.

Or does it not really matter if they are on year leases - from the perspective of someone buying.

It may be decades until we see the markets of 5 years ago.As far as the downward trend and the sub-prime crisis as it relates to REOs, I think we will continue to head downward (it will get worse from an economy perspective) for another year or two then will turn upward.Of course the 'downturn' is when you buy and the 'upturn' is when you sell, if you choose to sell.The hardest part, of course, is getting the lenders to lend.

Earlier today, I was sent an article from the folks at Forbes that they thought our readers would be interested in.The article is a great read and brought a new perspective to things for me.Subprime In Sheep's Clothing talks about how a new trend in the industry, a mass of defaults in Alt-A loans, may continue the downward pressure on the markets right where the sub-prime loans left off.This one is worth looking at!

They've received a lot and have nothing to show for it but piles of debt and multiple bankruptcies.I don't believe everyone has to start out scraping by at minimum wage while living in a studio apartment.

Have enough cash on hand to make multiple offers.