I would say you could find a decent asset with a $50K budget, keep at least $5K in reserve for servicing fees, force placed insurance, property tax maintenance and possible foreclosure expenses should the borrower not be able or willing to resume their payment performance.

If borrower defaults on the 2nd (or 1st for that matter) the 2nd can foreclose. 

But that doesn't really help the borrower get an FHA takeout.

Hi Tim,10% @ 80% LTV is certainly more than reasonable for HML to a borrower with no experience under her or his belt.

., what you'd normally send to a borrower as a payoff) plus the trustee fee (the fee owed to the attorney conducting the public sale).

This clause stipulates that if the property is transferred from the original owners/borrowers, then the lender reserves the right to call the loan due and potentially foreclose on the property if you aren't able to pay off the loan.  

Normally the investor will have to make this attractive to the PMI Company by placing a large deposit towards the purchase of the property.If the lender sees that the borrower has equity and is making serious efforts to market, the property the lender will generally delay foreclosure for a reasonable time to allow the property to sell.The lender will probably require the borrower to make full or partial payments during the marketing period to keep the overdue balance from growing.You as an investor can front all the cost as part of your purchase agreement.

Because DEMAND drives prices;I've watched & Participated in the marketplace here.I practice what I preach.Borrow $$ 4 2 things & 2 things ONLY;A-Your primary residence, &B-to make MORE money than the Interest on that which You borrow.4-for the folks stuck in the "stinking thinking"(eg:how mich Bigger of a "schmuck" than me will the next guy have 2B?)

Hey everyone, we just found a new site, created by the founder of E-Loan, called Prosper.com. The site allows anyone to become a hard money lender. People needing a loan can submit their project/need, and people (le...

I see it from my viewpoint- this weekend my borrowers in Raleigh and Charlotte bid against 38 pre approved or cash offers.