If short sale sale due to reverse mortgage or foreclosure then the borrower/principal homeowner per HUD [the foolish sponsor of the conniving manipulative reverse mortgage industry that is out to take homes from remaining Baby Boomer seniors & elders so younger families can purchase the homes instead while those seniors and elders are placed into senior living centers etc.

@Kim LeJeuneI have to assume that it was a rental house, as opposed to your personal residence or a flip.Each monthly payment has 3 components: interest - taxable as ordinary incomereturn of your principal - not taxablecapital gain - taxable at various ratesYour down payment has components #2 and #3.Interest should come from an amortization table. 

Hi all,Question regarding arranging a split structure with a principal broker.

You don’t include the principal payoff that your guests are providing nor the property appreciation.

if it is, I'd march down there, the principal broker is usually in the office or one of his team leaders should be and they should have the authority to print you a cancelation and sign it for you right there.  

Smith, RA - Principal Architect at Architect Owl PLLC (Licensed in NY & CT)      

My quick research indicates that while there is legal precedent (albeit from 2000) that this would be technically treated as a sale, only the principal and interest paid via seller financing amortization schedule would be taxable.

Even though the bank gave you $95,000 to buy the home, they get none of that appreciation.Opportunity Cost of Renting: No Loan PaydownWhen you own a property with a mortgage, part of your monthly payment goes towards paying down the principal which reduces the amount of the loan.

Borrower shall occupy, establish, and use the Property as Borrower’s principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower’s principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower’s control.So you have one instrument saying it is Primary and the other saying it is Investment.

When the property sells, They get a check at closing for their principal and interest.I ask them if they want to loan their money on another property.