The fact that the bank is getting "shorted" does not effect the net effect of conveyance.In many cases the homeowner (borrower) has signed documents which attest to them leaving the property as a condition to the bank accepting the short amount of funds as full payment.

if you buy homeowner insurance, and have a claim, you'll quickly discover that spending $300 for homeowner coverage is not a savings, it's a waste, because you weren't covered at all.I refer all my borrowers to National Real Estate Insurance / Affinity Group.

First off, I like to feel safe and often have to stop by properties at night...I would not feel safe doing so in a bad neighborhood.

definitely right. short sale is a symptom. the cause is easy borrowing and people buying houses that they can no longer afford, which results in massive selling regardless of what they owe on it."

You do not have to have a SDIRA to borrow from most hard money lenders.Chris

The bankruptcy related to the borrower's primary business.

However, this levering wouldn't make any economic sense for you if the true net return (cap rate) barely exceeded the borrowing rate.

Okay........Have a tenant that I filed eviction on.The county was backed up so took awhile on the writ.Marshall is serving the eviction the 21st of November after 3 months from filing court date.The woman became disabled and filed for SSI disability.I talked to her case worker and the usual time for review is 2 years to get approved or denied.She told them she was getting evicted and sent evidence.They escalated and marked file for review.When I discussed with case worker even though file is flagged it still has to go through the judge for review which takes 2 to 4 weeks and then if approved SSI will send me the landlord the back rent owed which is around 4,000 with late fees and penalties.So the answer from SSI will not be in time before the eviction.I already told the tenant today I need at least half 2,000 or I am not stopping the marshall from evicting on the 21st.The lady says she would call me back and says she might could get the money but the issue is she can't pay me because when she goes for review for SSI they will ask where she got the money to pay rent.Then she could lose benefits or amount of lifetime benefits going forward and will not risk the lifetime benefit.She said if I just waited I am on the forms to get paid when she gets approved.My thing is If I cancel the marshall then I have to refile eviction and with the Holidays it will be January or February before I get them out.I told the lady I was not stopping it for a 600 payment and that she is not guaranteed SSI approval and I can't stop it on a PROMISE.We will see what she does.I told her to pay by Sunday.If I get 2 grand now it will be one less unit I have to rehab and then if SSI doesn't come through with the rest in 4 weeks I can evict again.She is judgement proof even though I have one on her I can't collect from pensions etc. with garnishment or bank levy.She was a tenant I inherited from a previous landlord 4 months ago when I bought the place and she used to pay on time before getting hurt with her back.Any thoughts or dealings with SSI Disability will be helpful.

Say the tenant stops paying rent around that time and you start an eviction, the entire time the tenant is in the house, you can't turn the utilities off, so then you'd be digging a deeper hole.

I'm just about to get an approval on a SS and the negotiator came back and said the borrower qualifies for HAFA.