If you're a sub2 buyer, disclosure of this to the seller is essential.

Now thanks in part to all the complicated contracts and disclosures involved, many buyers/borrowers don't have a clue as to what they're signing, and hence the isues with mortgages!

.----------- Disclosures to BP: Property inspection has not happened.

I guess I don't feel it is a gray area since we had full disclosure with the IRS and they approved it.

As such these folks could have less money and sophistication and require much much more care and disclosure.

The "option" would be worthless to an investor, because every short-sale I've seen requires a disclosure statement from all parties involved that the seller gets $0 at close, and there's no other side-deals going on.

On a side note, keep in mind that if you buy this to flip, disclosure of the incident must be made which will hinder the value.

This gives full disclosure to the bank and tehrefore, if they do not utilize the DOS clause, they can not later.

Is there a law against disclosure of who the seller of the property truly is in a transaction??

Adding the disclosure along cost about $80 per ad per month.