She had this crazy idea that if it went to tax sale, somehow the lien would be wiped out and she'd be free and wouldn't get a 1099 for the debt relief.

Might give you a little relief short term, move you towards your goal quicker, and introduce you to some of the dealing with tenants but it is not for everyone.In any case I would write the plan down.

If I am understanding correctly the seller receives no money upon the closing of this deal, and the only thing in it for the seller is the relief from their mortgage payments, correct?

As a result, members enjoy the advantages of avoiding the "double taxation" of corporations as well as receiving tax relief from the poor performance of their LLCs.Limited Liability PartnershipLLPs have the same tax advantages of LLCs.

Martin : What a great relief to know that 2% rule is not applicable to the bay area.

I knew of a few people that were doing this for disaster relief situations (single container ready for plumbing connections and generator).

(Box 6b on PRE form) But I do agree you would not likely be able to claim any federal income tax relief unless it was sold at the same time as the rest of your primary residence.

I would add the following to that list:Building inspectorsGarbage disposalsCeiling fansFaucet sprayersFlat roofsAdditionsToothless neighbors that tell you they "don't like rentals"Fat tenants that clog the toilet due to the disgusting processed food that they eatBF/GF's who break up and think YOU should decide who stays and who leavesContractors who show up late because their life is a total train wreckSideshow neighbors who don't keep up their property and make it harder to rent or sell yours.Furnaces with a glow barThe pressure relief valves on water heatersPhone calls after 4:30.

If the borrower missed payments, that allows the Mortgagee to file for a Relief of Stay in the bankruptcy case.

Did you properly deal with the borrower seeking relief of his hardship?