As a mortgage professional I always ask other business owners, " how's business"? Just the other day my AC repair man was in the office attempting to get me some more cool air pumped into my suite as the heat was becoming unbearable. As he wrapped up his visit I asked my typical, how's business"? Man, I did not expect such a long conversation to follow.

He went on to tell me how life had been so good the past five years or so. He remained small all these years offering personal service to builders, socked plenty of money away and pucrhased several rental properties that had great cash flow and plenty of equity........

Fast foward five years......................... These properties now sit vacant. Most of them have lost so much value they are now upside down. Of course the loans he got on these properties were the flavor of the day at the time, 5 year interest only arms that are due to reset in 2010. And also of course, based on his great credit and some money in the bank at the time, they were stated income loans. And worse yet, those awesome builders who helped stack his money to purchase those properties who had always paid when the job was finished are now paying 30, 60 and even 90 days net..... and by the way.... stated income loans ain't no more................

If this situation sounds familiar, stay ahead of the curve before it is too late, understand your options and seek high quality advice from people who understand this business. Put a solid plan together to eliminate debt and monthly payments and stick to it.