Won't name names, but one owns a creative finance education platform, and the other is a well known creative finance podcast host (neither are Pace Morby).Both told me the same thing: Not disclosing the second position lien to your first position lender is mortgage fraud, regardless of how it's structuredThis method is certainly interesting, and may in fact be allowed by your lender if you disclose it, but it seems disclosure is the name of the game.

Also I am curious if you had to disclose any personal assets even if you did not use them to secure these loans in other to enter an agreement with them. 

If it is later discovered that the information disclosed on rental application by Tenant was incomplete or inaccurate at the time it was given, Tenant shall be in default of this Lease and Landlord may pursue any and all of Landlord’s remedies regarding said default.

They failed to disclose material facts.

We’ve considered just disclosing and selling as is, but I suspect the buyer pool would be very limited knowing the issues and risks.  

Where I sell real estate we have to disclose it on the MLS, and I put it in the contract or an addendum for the buyer/seller to sign.

If the seller discloses the party in possession, the buyer/insured should have also been aware.

Also, very good point about being careful of which info we disclose and to whom we disclose it.

Can the seller not disclose this matter?

If you are using their contracts, I could see how they can ask you to comply, but you should hire an attorney to draft your own agreements and simply disclose to all parties that you are licensed but acting as a principal.