Your question is slightly confusing. You purchasing a home as a Bank owned REO is different than going though a non-judicial foreclosure. If you are puchasing two properties knowingly getting cash out, and intend on not paying immediately- that is fraudulent and they will seek deficiencies against you and any other Borrower or Gurantors- which will be devastating to your credit.

Don’t foreclose, MITIGATE!
I can usually get my clients rates reduced drastically and allow them to keep their home(s) by helping them negotiate with the lenders to lower the rate and “forgive” past due payments without an appraisal or credit check.
Also, Loss Mitigation does not hurt your credit like a FORECLOSURE and even after the foreclosure you’ll still owe the bank money!
Further if you purchased/refinanced them both as “Owner Occupied” they’ll come looking for you for committing fraud…

Feel free to re post a question and e-mail me if you need further information.

It would be twice as bad. If you are buying the homes, what do you care how bad it looks? Unless you plan on going into foreclosure yourself.

Well, ask your bank.

As long as you will not need financilng any time in the next 7 years, not too bad. You shouldn’t be able to hear the banker laughing too loud at your application if you do need financing.