Could be something state-specific, or a very wrong interpretation of the 4th amendment.

If you don't itemize, then I believe the mortgage interest can also be added to your cost basis.Suggest you consult a licensed tax professional for assistance since you may need to amend your 2011 tax return.

Agreed, I think a lease amendment is in order.

Especially, if they amend or get rid of AB284 the REO's hitting the market should increase.

The AZ Court of Appeals found:Deed restrictions for residential community withoutcommon areas, containing only restrictive covenantspertaining to each lot owner’s personal residence,could not be amended by majority vote of lot ownersto require membership in homeowners’ associationand imposition of assessments, and thus amendeddeclaration of restrictions requiring lot owners to payassessments to association was invalid.Neff drew up the CC&Rs for New Tucson, prior to that there was only three pages of deed restrictions.

Our CC&R's state that to amend our CC&Rs requires a 75% approval of all homeowners.

Should I write them a complete new lease or simply a amendment stating husband is released from the lease?

Just had a call with title company, the UCC Lein was created by the 1st Mortgage and later they filed a UCC amendment that the lien still exist.

I'd also have the seller sign an amendment stating there are no lease agreements on the property; while I'm sure your contract probably covers this issue, can't hurt to be safe.

You basically are taking on all risk for the property except title defects.You can not counter or amend these docs or you will not be their buyer.