While that statement may be true, it plays a very small role in the real world of buying REO as most properties will never come close to causing the bank a legal/regulatory problem.

If a loan was sold to FNMA or FHLMC the servicer is still involved int he liquidation of the property - once again not financially, just administratively.I can agree with the "majority of loans" statement and I agree with the sub-prime market issue.The quarterly deadline comes into play with the 100 x value statement.Who controls the business activities of banks?

Well in one way or another there are correct but there are many other aspects that come into play in making a decision!

I really want to network with an investor, but I'm not able to play with the local investors since the homes in SoCal are so pricey.

If the end buyer is getting conventional financing the lender might refuse to do the deal.The earlier point about being a minor and not being able to sign a contract that would be binding comes into play if someone wants to go around you.John Corey

There could be factors in play that push rents up or down in specific areas.

Once they do, it is not at all uncommon for manipulative tenants to try and play both ends against the middle...the PM that has boots on the ground.

People have a lot of resolve when it comes to life threatening situations and stand and fight, but people will buckle quickly when it is acts of humilation that come into play.

8% when the money is in play or 8% even when the money is idle?

Certainly, I've seen variations, but the variations are upward and not downward.If your knowledgeable and willing to do the work yourself, you can earn back some of the expenses.