One case I read about involved the FBI, the Postal Inspectors, HUD, SEC and the Treasury Department, bringing incredible assets to bear for prosecution of related violations.The "safe harbors" you mentioned Don are "prudent lending practices".Any lender who has never made a bad loan hasn't made enough loans, it will happen and is just part of the business.

The surest way to solve this is to ask each CPA to pull the authoritative guidance that they're relying on and send it to you with the relevant parts highlighted...Internal revenue code, treasury regs, court cases, revenue rulings, revenue procs...those are all authoritative. 

They are getting a leveraged cash on cash return of less than the 10 year treasury yield with the added risk of owning and managing real estate. 

Who would make that kind of investment with all the associated risks and hassle when anybody can buy today a risk-free 30-year US treasury bond that gives them a 4.285% annual return at the click of a mouse or a call to their broker?

Under the act, up to $2 million in debt elimination can be tax-free.Based on the importance of facilitating home mortgage modifications, in the Treasury’s Green Book, there is a summary explanation of the administration’s budget proposal and it calls for an extension of the tax break due to ‘the continued importance of facilitating home mortgage modifications.’

If I submit the payment to the State Treasury, what occurs next considering the owner is deceased?

Richard Z.Jon Holdman,J Scott,Jeff Greenberg,Jon, I am an Enrolled Agent licensed by the Department of the Treasury in Tax and to represent all types of taxpayers before all levels of the IRS.

It inverted for a short time in Dec 2018, then for a longer time from May to now for the 10-year treasury bond rate has been lower than the 1 month treasury bond rate.

I have been talking to my small local bank and these are the terms they are offering: Loan Amount: $60,000 (I'm assuming they appraised at $80,000 with 75% LTV - this was not stated specifically)Am: 15 yearsRate: 5% fixed for first 5 years, then 1 yr treasury + 350 points (5% floor) Monthly payment: $477 (approximately)Here are my numbers on the property:Property Curently Rents for $935 a month:Monthly ExpensesP&I477Property Tax104Insurance52Vacancy80Maintanance 50Cap-EX150HOA0Property Management0Total:913Monthly Cash Flow22Yearly Cash Flow264This would allow me to pull out more than I put into the property.

Mom + pop investors such as ourselves may on the margin be more inclined to buy something like that to get yield, but I would argue with the 10-year Treasury at 3%, and blue chip stocks like CAT yielding 2.5%, they headaches that come with being a landlord are not worth the extra 100 basis points - anyone who has been around this game long enough would agree with me on that, I hope.This notion of "staying on the sidelines" being looked down upon is also not something I particularly care for...asset valuations (and life in general) is not black and white.