Back on topic...I'm friends of many years with an economist who was instrumental in bringing "risk based pricing" (RBP) to the mortgage industry through his company, GHR Systems.

@Monique Rene CoatesIf you have a valid POF for $500K, you would have liquid assets (cash or cash ready instruments) of $500K ... so your downpayment would come from the 500K.

Contracts covered by Florida's statute of frauds include the following: Purchase and sale contracts Option contracts Deeds and mortgage instruments Lease agreements for a term longer than one year Listing agreements for a term longer than one yearAlso in Florida, the statute of limitations designates the period of time during which the terms of a contract may be enforced.

Not a under market loan but a deal that far exceeds what a HML would cost IE a JV... but its 100% and the JV partner is making an infinite return without the worry of a debt instrument..I have one in North sac going right now that I funded 100% we are going to make about 80k on it.

What instrument does she play?

For starters, notes aren't recorded (bet you knew that) however the security instrument is (trust deed or mortgage). 

I found a QB bookkeeper that was instrumental in helping me get it set up correctly. 

I don't think that using an agreement that references a previous and still valid agreement (original note) is considered a new instrument that replaces the original agreements.Curt's reference earlier and copied below seems incorrect since there is no "brand new mortgage" IMHO.In BP threads thanks to Bill and other true experts, what's left out is that that work out is now a brand new mortgage that needs FULL Dodd Frank process; full doc, some DTI that you choose, an LMLO and a closing at an attorneys office

., there's some pieces that your advisor and all who say this is a very poorly performing instrument are missing.  

An "Assignment of Mortgage" is NOT the "security instrument".