He has a sizable nest egg and woudl not want something to happen to it due to a tenant suit from this property.Also, are there any circumstances where the lender would call the note by doing this?

I'll bet that under the circumstances they will continue the assistance on a probationary basis and if the kid is found guilty, they can revisit the situation.

I have at times been a long distance investor, once by choice, but moreso by circumstance.

It is important to know how they work and what their benefits/drawbacks are, then use them strategically when the circumstances are right.Sure sellers balk at Options, for a number of reasons.

There are many non profit credit counseling agencies that can help you figure the best course of action for your specifc circumstances.

Yes it would be worth it to move back briefly as inconvenient as it is.The proration ONLY occurs when you have an "unforeseen circumstance or other listed exemption".

(assume that I'd be able to get qualified for the loan and that it would be "reasonable" to be able to pay back the 40K in the time specified)after re-reading, i assume the investor would need to be a lienholder from the beginner under any circumstance...but is that even possible, or would I have to buy the house "with" the investor, which i'd rather not do...also, do not dwell upon the legal details of the arrangement, i have people that I could do this with on a verbal contract not to mention a seperate written contract that protected their investment+interest in the event I sold the property for a gain...I'm much more concerned about the actual numbers/percentages and how realistic this proposition is from an investment standpoint, not a legal one..

I was under the impression that a pro-rated exclusion was allowable due to "unforeseen circumstances" as the IRS defines them.

There are three mitigating circumstances that work in your favor:1.

Sometimes there are extenuating circumstances that allow you to withdraw the money penalty-free, but usually you have to be at least 59-1/2 to withdraw it without penalty.