You run your business your way, and I'll run mine my way. Let's leave it at that. Like I said, I get more than just a paycheck when I can help someone avoid foreclosure. If that's charity, than so be it. Maybe when they get back on their feet they will call me to help them find a new home. I won't hold my breath but, who knows!

BTW-From past experience, I would be willing to bet they were pushed into that loan product. Not saying it wasn't their responsibility, but I bet that financing wasn't what they were originally looking for.

I completly agree on the 100% i/o. I use an I/O but I have equity, and the difference gets split into retirement accounts, that have outperformed my APR (so far). These products should only be used as part of a complete financial plan, that's what they were designed for!

hey aaron

which investment vehicles did you invest in? are they liquid and what kind of return are you getting?

why not use an option ARM to put more of the difference into your retirement accounts?

can you assign/wholesale the purchase contract when negotiating a short sale? i think the answer is no, but just wanted to get confirmation.

Well diversified in stock, UIT's, REITS, and funds. I think there might be a few muni bonds. We've dabbled in a bit of everything. They are liquid to the point they can be in a retirement account. Cannot withdraw, but can liquidate inside of the account. Up until this year was mostly real estate.
Not interested in negative amortization, with the option arm.

Off topic sorry!

Why not? Everything is negotiable, but why? Short sales are usually not good investments. No equity, sold at market value. They usually are a stretch to get at 70% arv. Unless completely trashed.

not sure, i was just assumming it cant be assignable since youre dealing directly with the bank/lender.

isnt a successful short sale the purpose of building quick equity especially when its overencumbered?

I just don't think there is enough of a discount on short sales to be considered a reliable investment vehicle. Unless you can create additional value with re-hab, or get a bank to believe the house is worth way less that what it is worth. It's possible, but I think finding pre-foreclosures with equity and potential for building additional equity through a minor or major re-hab is more valuable. Just my opinion, but if the numbers work, go for it.