As a joint owner, only her share would receive a step-up, and you'd still owe capital gains tax on your portion based on the original purchase price. 

He them procede to tell me it had hair line crack and that possibly the water was leaking from there and that it was a wear and tear because those pans only last so long. 

Almost zero positive feedback actually so that really answers my original question. 

It's not the difference between 11.5% or 12% or 1 point or 2 point origination. 

It gets the customer out of my hair during construction.  

Originally posted by Ann Bellamy:I also have a source that I broker to who does 100$ financing, but the program is so expensive that there are few takers.I'm curious Ann, what are their rates and terms?

Numbers are favorable for HML, 2% origination fee, 12% interest, 90% LTV/100% rehab.

Yes, on the original contract it states "My Company, or designated entity" and yes, I told my realtor it was being assigned, and also forwarded the assignment contract to title, all prior to the deal falling apart.Would that change things at all?

You may be able to call the servicer and provide the original loan docs to show that it was not supposed to report to your credit. 

Originally posted by @Ron Fletcher:@Andrew CarlsonSo here is a great chance to keep turning it around.