Yep, when we sign up for servicing as a company they ask you "what loss mitigation measures does your company allow" We offer loan mods, forbearance, deed in lieu, short sales and short payoffs.

For 2023, since your property was rented out with an average stay of under 7 days, it should be classified as a Short-Term Rental (STR).

https://www.biggerpockets.com/blog/brrrr-loans-what-are-the-...Short-Term Rental Loans: What Are the Options and How Do DSCR Loans Stack Up?

It's disappointing that you can't make it work with short-term rentals, as that should be much easier.

A short-term rental with a stay of 7 days or less + Material participation =also non passive.

Will you use the HELOC as a short-term bridge, or plan to hold it longer?

The brother and his son had been living in the house, free of charge, for years, and were gaming the system.

investors can figure on 10 to 12% return on PMLs   generally they are short term 6 months to 18 months.. in my 40 plus years at PML I find most investors started as landlords then tire of it and start to diversify.

It might cause me financial harm as I have to sell more stocks and might pay short term capital gains vs long term capital gains.

I don't know what the issue is/was, but I think a lot of customers want to play games and he probably did his best to keep them on the straight and narrow.