They would help you in raising funds etc.

Maybe you should clarify this so readers know they really need to obtain funds from that friend or colleague.

They started to develop the housing track but, since the properties are not selling they lost there funding.

I am trying to determine the worst case scenario if I paid cash at a huge discount: What happens to a large condo complex - and the remaining unforeclosed homeowners - if it can no longer raise enough HOA funds for management, maintenance and repairs... ?

This bailout does appear that its going to ease funding, but I'm not convinced its going to help the FL condo market much.

The flip side is I'm 5 years from paying off my home, my wife and I were really looking foward to saving the 1200 we pay now 5 years from now, but I was just going to invest that in mutual funds.

Iam going through an arduous process with WAMU myself.My case:I have a Condo (primary residence)1st and 2nd mortgage with WAMUtotal owed: $680KI knew I would get into trouble because my business went flat a 5 months ago and my cash reserves are being extinguished.I downloaded the information from WAMU site and submitted a complete package with an offer from a neighbor that is interested in buying the property if price is OK.I submitted ALL documentation to WAMU with the offer, proof of funds (50% downpayment) and prequalification for buyer through Wells Fargo.Offer $375,000 - prices for 2003 as per tax records.Nothing has been sold recently (18 months frozen market).WAMU sent an appraiser on Sept 02 and by Sept 04 the appraiser confirmed that the report had been submitted to WAMU through the third party company that manages Appraisals requests (REM).I have the name, extension number and e-mail of my negotiator but it has been IMPOSSIBLE to talk with her or to get anything from her.Her last (only) e-mail on the 23rd said that she didn't have the apparisal report (I tried to get to her to try to resolve it, but nothing back).Now she is in vacations until the 14th.I had been on time for my payments until August.I haven't made my payments for September - cash reserve extinguished.When will this default start affecting my credit score?

However, they are going to be very stringent on making sure funding is available as advertised by the buyer.This morning one lender notified a Field Guide member they will require the funds needed to close a short sale be deposited with them within 24 hours of the deal being negotiated.

Because credit is so tight it has become very difficult to fund deals.

Sure, sell enough of the other assets you bought with these funds to pay it off.