Just for the sake of round numbers at 6.5% 30 year Fixed in the first FIVE years, you only pay off just over $2000 in principal.

You have lived in the home as your principal residence for at least 2 out of the last 5 years. 2.

A contract that covers something illegal is not enforceable.Most states prevent someone who is not a principal from collecting a fee or commission on a RE deal unless they have the correct license for the state.Depending on the deal and how you document your relationship to the parties you might be bring to court a document that proves you are breaking the state laws on RE brokering without a license.John Corey

Given that my Mother's mortgage principal is down to $90K and house is valued at $250K.

The bank is just trying to deal with principals rather than bird dogs such as yourself.

the cons with it is that if you stay in it long time, you could end up in a negative equity situation..because your payment is lower then the p&I and ther is no principal going towards the balance..that is if you continue using or paying on the neg am choice..the option arms and neg am's are really popular in California..but their making their way across the u.s.

Hi folksI live in southern california and I am wondering what to do with the townhouse that I used to live in as my principal residence:Bought in 1999 for $350,000 (4 bed 3 bath townhome)Current Market Value: $725,000Current Loan amount $235,000Monthy loan payment $1920/mo(15 year loan; 5% fully amortized loan; 11 years left in the loan term)My wife and I moved out last month and we have a renter in the property now:Rent: $3,000/moHOA: $250/moTax: $400/moInsurance: $200/moIs it better to keep this property and let the tenant pay off the mortgage (currently have 5% loan) or sell it.I'm currently renting in L.A., looking to buy a sfr for my family.

I understand the principal of the sub 2 but nut sure it would work here as trhe owner wants tro get something out of the deal.

Mark,Would you be acting as a principal or broker on the deal?

I just am uncertain of how the lenders are to deal with as a principal....what is your opinion if I may ask-or this topic is open to other views as well-I am open to feedback from all sources.