Wifes' spending habits...

This is your time to use the Numbers of your HOA to convince the Planning Commission that you would be harmed if the building was over 3 stories.

If you are building a new duplex in an older area and bringing up values, property owners would be hard pressed to get a court to agree that you caused them "harm" Are there other duplexes in the area?

Chances are you will - have a deficiency judgement, - if there is a second mortgage you will owe that money, - the IRS views the debt as forgiven income (see a CPA), http://www.irs.gov/Individuals/The-Mortgage-Forgiveness-Debt-Relief-Act-and-Debt-Cancellation-- your credit FICO score will drop as much as a foreclosure,and - your borrow-ability with any government agency like FHA will be harmed for a long time.So what is left?

Regarding risk thats why you bring contractor through to explain to you what your up against monetarily to get it into good habitable shape.

Banks have a habit of cutting/limiting commissions, in a short sale, on Their side of the transaction.

Keeping my fingers crossed...it is habitable (still has tenants) and did not have any pending code violations.

What I have stated regarding lender / owner position is something I know for an absolute 100% fact as I know I have 3 children, as I know the Earth is round, and as I know man has walked on the moon.There is no harm and no crime in admitting you are wrong, it does not make one a bad person.

As a hypothetical: "Betty, who has a gambling habit, has been taking $x,xxx,.00 a month from 7 client's accounts through fraudulent invoices and payments to a fictitious company.

The stricter guidelines includes requiring the home to be considered habitable which means the home must have a working furnace, good electric, good roof and a few other requirements.