Seller got a loan for $94k in 2000 from Lender A, secured by a deed on the propertySeller got another loan for $105k in 2002 from Lender A, secured by a deed on the property Seller claims that this was a refinance of the original loan, with additional debt rolled inLoan docs from the seller suggest this is true, BUT the box labeled "refinance" is not checkedNo modification or release was ever filed for the 2000 deedTitle policy from the 2002 transaction listed the original 2000 deed as an exception to coverageThe HUD-1 settlement from 2002 doesn't show any specific payoff of the original note.The current loan servicer sent a payoff statement that will release the 2002 deed, but no mention of the 2000 deedI reached the person listed as trustee on the deeds.

Any code regulations / building modifications needed for the new use?  

@Michael RobertsMost likely a loan modification where they redid the loan when the UPB was reduced

Keep in mind that if you do any modifications, you may be required to meet CURRENT building code, whereas the current setup may be OK under previous building code.

For some people, this can be as simple as getting home loan modifications – but others may actually need to sell their home in order to stave off a foreclosure.

NJ has an incredibly long foreclosure process and I’m sure a lot of of those delinquencies stem from loan modifications of loans from the pre crisis era.

You need to report and pass along the GA modifications to the LLC's members.(3) I don't know if any CPA/EA here is going to help you self-prepare in TurboTax for free... 

They went delinquent, then got some sort of modification where their delinquent interest/fees were tacked on to the back end of the loan, increasing the balance.

My concern is that he/she would never agree to any modification but yet be willing to fight any foreclosure action (in pro per  of course). 

However, the month to month lease at $200 would not allow for any modification to the unit.Thoughts?!