I don't profess to be a financial wizard and I can't begin to understand the complexities of the mortgage system but I do know this. Foreclosing on 2.5 million mortgages means there are 2.5 million vacant homes. These homes will require monitoring and maintenance in order to keep them in decent shape and the threat of vandalism has probably increased by at least 50%. Who is footing the bill to look after these properties?

Would it not make more sense to figure out what the mortgagee can afford to pay and add the difference to the end of the mortgage? Some small payment is better than having no revenue and a vacant property. I imagine that given time, many of the people who have lost their homes would be able to start making the proper payments again. The costs to foreclose must be prohibitive. How can lenders justify this to their shareholders? A reduced but steady income, no cost incurred maintaining vacant properties, no legal fees for foreclosure.........sounds like a win, win situation to me.

The effect that foreclosures have on the economy must be astronomical. If you consider that each foreclosure most likely directly affects two people then you are talking 5 million people who are now without shelter. People living without shelter are certainly not going to be buying the luxuries in life. They are simply trying to survive. Businesses that depend on disposable income will be noticing a huge loss of revenue. The people who own these businesses also have bills to pay. Perhaps, they too will lose their homes as they no longer have the income to pay their mortgages. Where does it end?

How can this situation ever improve unless financial institutions and the government realize that these are not simply financial dealings but the lives of human beings? It was the responsibility of the financial institutions to give mortgages responsibly and the duty of the government to monitor these transactions to make sure that they were ethical and responsible. Since the lenders and the government have failed to do their part, it behooves them to assist those who have either lost their homes or are in the process of doing so.

This is what consumers commonly pay that generally cover all the expenses of the wholesalers, retailers, and manufacturers. When you pay retail, you are paying 100% or more for a product that you are trying to resell in the future. You also may be paying an inflated price due to intangible factors like location, good press, or poor research. If you are a serious investor, you don't ever pay retail!

Wholesale Price –

What middleman vendors and marketers usually pay. These agents can still charge a price profitable for them, yet low enough to appeal to retail sellers. Wholesale purchasers usually purchase in bulk in order to get a lower cost. In most cases, investing in a product at a wholesale price means that there is still a desire in the market for the product, and it can still generate a good profit margin for you.

Fire Sale –

This typically is the manufacturers base price that includes all costs of producing product/service. Investors view this price as a turnaround opportunity and negotiate the lowest price possible and can sometimes get below base price because of poor market conditions or devalued inventory. On the surface, fire sale prices can be attractive because they seem like a bargain. However, investors should be wary of fire sales because there may be unknown or unseen expenses associated with the purchase that will not make it a bargain.

The key to knowing the difference between any of these price variables is making sure you do enough due diligence to be able to make an intelligent decision the next time you are ready to take advantage of a "good deal". Due diligence means comparing apples with apples - matching similiar products in the same industry (stocks) or neighborhood (real estate) and making comparisons based on price.

Take foreclosures for example. I'll tell you right here for free (if you don't already know), a list of foreclosures can be found at your local courthouse in most cases. They are also listed in many local newspapers. As far as getting a great deal; it's like finding a "needle in a haystack." In most cases, when a foreclosure goes to auction, the mortgage holder (quite often) has someone with cash waiting to save the property in trouble. (Though you may get lucky).

Then you have tax certificates and tax liens. A list of property with delinquent taxes is also public information, and for a small fee, the property appraiser or clerk of the court can run off copies for you. They can also provide you with the date of any upcoming auctions. These auctions typically go pretty quick, and again not everyone will let go of their property so easily, even if they have to borrow the money so they don't lose it. Also, before bidding on these types of properties, it is best to thoroughly research what you are buying.

As for these so called "real estate courses," some of them charge in excess of $4,000 dollars. They provide you with a "coach" and a "mentor," and some of them are beginners just like the people that have purchased the "course." A typical course will tell you that you use other people's money to finance your purchases, when the fact is: You need money to make money.

It is a rare instance when someone is willing to sell for pennies on the dollar, and "you get what you pay for."

A typical "guru" website will start off telling you how much money they made using "a simple method." Toward the end they will ask you for money, and more times than not- you probably won't ever be able to contact the person whose name appears wishing you "the best of luck." One I have had an experience with is Lou Vukas. I have never spoken to him, or been able to contact him, AND no one seems to know who he is, but he sure has a lot of emails to send.

Bottom line, just ask someone who has been doing real estate investing, or mortgages or refinancing and you'll be surprised at what they will teach you for little or no money.