Close to two years ago I bought a new house and moved across the country. I was unable to sell my previous house without dropping my price, so I decided to rent it out at a monthly loss until things "recovered" in the following year. (Look at my iTulip join date. I wish I found this site earlier!)

At this point, the house could sell quickly at the exact same price as the value of my loan. I stopped paying the mortgage a couple of months ago as I was hemorrhaging cash. I am sure foreclosure is imminent.

On NPR today I heard about a couple of guys who are buying up "toxic" loans directly from banks for 40 cents on the dollar. It got me thinking... I am sure my bank wants my loan off their books. Do you think they might take a check for 1/3 of the remaining loan balance? I can see why a bank does not want to do a cramdown because they still have the same shitty loan, with the same deadbeat "owners". But, they may be willing to take a cash buy-out, right?

What are your thoughts on this?