whatever you do, make sure you get the new Home Price Protection that is available. I did, and now I don't have to worry about the values declining in Arizona anymore. I follow the index every month, and when I see it drop, I don't even care anymore! If you want my guy's contact info, let me know! I think it might save alot of people down the line, and get some confidence back from buyers!

Great question, I have a better answer! If you are currently upside down on your existing home and have approximately 10k in savings you may not qualify for the investment property. One of the new rules of lending will require you to have 25% equity in your primary residence.(they call it the buy and bail program) In addition, you will more than likely be required to put down more than 10k between the down payment requirement for investment properties and the closing costs. Keep saving your money. Remember, a fire sale is currently going on in the stock market. You shoud simply get with a qualified financial advisor and talk about how to invest your money. The best advice I can provide you is to do the opposite of the crowd and you will find financial success. Remember 2005 people standing in line to purchase a home, multiple bids on the same property, way out of control. Those who followed the crowd are most certainly upside down! Now look at today and the stock market, while this does not apply to those ready to retire, someone your age should be buying up stock like a crazy, again the opposite of the crowd people are selling out in fear, if you have cash buy in the downside risk at your age is very small. Remember the market has declined about 40% rough and tumble. Stocks will recover long before the housing crisis is over, so if you play your cards right you should see a nice return on your 10k and still be able to pick up a nice bargin when the credit markets loosen up. I would say for 26 you are way ahead of the crowd, just don't follow the crowd! www.usmortgagewatchdog.com dmessina@usmortgagewatchdog.com