[They can then hope that you DO default, so they get to own their property again, and keep all the payments you've already given them].

With the run up in values, it's suspect when you can't sell to break even.One (almost) absolute: Never let the defaulting owner stay in the property.Hope that helps.Good Luck!

Instead of doing a typical rent to own would you be on the mortgage with your landlord to gain home appreciation if there was insurance built in your landlord will not default?    

They only had a certain small percentage that they could lend on loans and their own defaults.

They are going to try to loan in such a way that if you default, they come out financially whole or ahead.

In the second case, the store that would not honor its carpet warranty did not show up, so I won by default.)

Our borrower defaulted and we took the property to foreclosure.

Some minor defaults were identified of which I won't hold the seller liable.

Depending on your property and your income/credit worthiness together, you can find:a) FHA loan (a conforming loan that is insured by the federal government; this insurance protects the lender in case you default.)

If you have nothing to lose then defaulting on that loan won't be as big a deal.Cash on cash calculation has no bearing on where you get that money from.