Hi John- they seem to be in a tough spot related to the Synapse Financial bankruptcy- they've essentially suspended operations and are trying to sort through the mess.

Do you think the IRS would ask the seller why he lost”forgot”to declare the $1 million in income when he sold your friend the house?

We got delayed when the borrowers, who thought they were done, filed for Bankruptcy.

The declaration identifies the would-be buyer as trustee; and the current owner as the beneficiary of the trust.

File Bankruptcy and fix your house up and sell it or sell it as is for the amount you said it was worth vs what you have it under contract for now.  4.

The only time they are not personally liable for the liens is if they filed for a bankruptcy in the past and listed the lien holder as a creditor.Once you take title to the property, you will need to file a quiet title action against any lien holders on record.

Engineering Report has declared the property re buildable Goal to to be all in under 80kBased on lose comps 120K today would be the resale value to hit as a 3/1.

And they’ll have to declare that interest on their taxes (Though the kids can then deduct it from their taxes.)

Bankruptcy allowed?

Come January there is no hiding things, holiday spending will declare the standing of things, and while not impossible to do, I find it hard to see how they could spin a huge reduction in holiday spending as "economy is a-ok".