Because different states may have different laws and because one county judge may view certain types of RE deals than another judge in the same state, contracts should conform and comply with what is referred to as "local custom" and an attorney will be familiar with local customes in the area you want to do business in.

Due to my limited up front capital, and the overall markets in California (I live in the Bay Area) it's hard to find a house in my micro market that will conform to the 2/50 rule.

By the time some agent or even that broker writes a blog about the issue, the circumstances have been lost and you may trying to conform to something that is totally unrelated!

Will the city building department and the planning and zoning commission agree its a triplex and that its either in conformance with current zoning or that its grandfathered?

Not even an issue for the advjuster, better not to even bring it up, just agree as to the value of the loss.Then you can tear the place down and build what ever you like so long as it conforms to building requirements in that area.

You are correct that the small local banks are your best bet for finding loans that don't need to conform to the standards that larger banks set (like FICO and down-payment requirements).That said, setting up a business entity and trying to get the bank to provide a loan to the business isn't going to work if you can't also qualify personally.

There are questions all of the time about lenders for loans past 4 that are conforming, commercial loans, lines of credit, etc.

April your friend is buying time.They will have no motivation to sell to anyone after the BK filing.Until the filing their back was against the wall.Now they can breathe a sigh of collective relief for a few months at least.When you file typically most do a chapter 13.You have go through a meeting of the creditors along with a conformation hearing down the road where the plan is approved.Lower payments do not really happen in a 13.A chapter 13 usually lasts 3 to 5 years on the repayment plan.The trustee payments and attorney payments are front loaded before the creditors so they get paid first as they know most cases will get dismissed.With reduced payments on the mortgage you are talking about a forbearance plan with the banks loss mitigation department or a permanent loan mod.If someone has crap credit already they might could care less and file BK.They can get many,many months of free mortgage this way.If you don't make the regular payment the lender will file for a "relief of automatic stay" and if you don't make the BK payment the trustee will file a motion to dismiss.Since you are creating an additional payment for the back payments owed on the mortgage plus any other creditors included you are not doing anything.If your friend owes a ton of other debt as well a chapter 7 might be best.In a chapter 13 your credit is frozen in the crapper for the term of the plan 3 to 5 years.In a chapter 7 you are immediately liquidated and can build credit back much faster.Attorneys want that money.Many in my area will file chapter 13 to get started for 75 bucks!

I resent it, got an e-mail conformation; than the same thing over the next few weeks.

Essentially, if the bank ever calls you on that loan, you will have to pay the full balance or they will foreclose on the property.1) either deed it properly and don't quit claim it2) have enough cash reserves "just in case" you get called on it, and move it in to your LLCinvestment conventional conforming loans are few and far between (if they even exist this day in age)i've gone with option #2.