I prefer they have a stake in the margin.However you work it, the mitigation fee is listed on the HUD-1 after line 1300 for Additional Settlement Charges.

We started out in the auto industry helping dealerships raise credit scores for their customers and now we are focused on the Debt Settlement/Loss Mitigation Industry.

The debt boot received is offset by the cash boot given and the exchange remains fully tax deferred.So, if you look at the general rules for a fully tax deferred delayed exchange, as long as the replacement property value is equal to or greater than the value of the relinquished property AND all of the exchange proceeds are used in the replacement property acquisition, then by default, the exchanger will have to bring cash or new debt to the settlement table to purchase the replacement property.The replacement property debt does not HAVE to equal or exceed the relinquished property debt, but as a practical matter most exchangers do bring new (and often greater) financing to the settlement table to preserve their own cash.Does this clear up the confusion?

You're confusing government sponsored loans, like FHA, Fannie Mae and Freddie Mac with the "settlement statement".

I have done many settlements out of closing and RTR knows this.

Then seller can offer low settlement on it.

Qualified acquisition costs mean the costs of acquiring, constructing, or reconstructing a residence, including any usual or reasonable settlement, financing, or other closing costs.

You should be able to substantiate it if it's been more than 2 years (with, say, settlement statements or something similar).

Title insurance, appraisal fee, closing/settlement fees, etc.

Closing/settlement documents such as the HUD form, utility forms and contracts.