Home Owner Investor web site reports daily progress on 7 Foreclosures

Summary Of the Above Figures......

Total Investment per house with down payment, closing costs, refurbishing, updates, best guess, $65,000, paid on prinicipal average to date $8,000 best guess, total $73,000 per house....

Times seven homes @$73,000= $511,000.00 gone if walkaway or not walkaway.
Lost in Last 2 years Operating= $82,000.00
Quit January 1, Asking for mods.
Total losses walkaway - all...........$593.000.00

Saving loss estimated 2010....... $70.000.00

If modified to what may be workable we will continue.

Still renting.

This is beating a dead horse.

We stay only with what cash flows. (pays its own way.)

Editors Note:

Real Estate In Arizona has always been considered an ideal investment and appreciated over an average of 3% a year. An Az Home I bought in the 70's for $12,000 appreciated to a top of $195,000. Currently still worth today $150.000

These homes, listed above would normally have appreciated to at least 10%. or $200,000 during this period, instead have depreciated, about $600,000 wiping out investment plus $100,000. Question, is how much more an intelligent person would be willing to lose in addition to investment? and for what reason?

Editors Note: 2

In addition to the above these homes are a total of currently underwater $216,000 and authors best estimate short sales etc prices will further decline here until they are at least $250,000 underwater. Despite losses so far, we would be asked to pay this in addition. If we continue, without modifications of the loans, that is what we are doing before we are back even.

In Arizona there is an anti-deficiency law that says we can not be held liable for this part, we can return the home to the mortgage holder and that ends it.

This is only true in seven states. We can be liable for income tax on the amount forgiven under the law. However, it would seem our losses far exceed what was forgiven by the mortgage holder under that law, so would expect our tax consequence to be a wash or a plus.

Click here to see active working site of renting these homes.