(Agreement with your client that grants you the authority to collect on this alleged debt.)

Definitely reach out to the local housing authority &/or their case manager and advise them of the problem.

In the end, this is up to Congress, as they control the purse strings. 

Most “Gurus”, authors, advisors and experienced real estate investors preach obtaining seller “carry back” financing for property buyers in order to (1) obtain financing when they don’t qualify for a 3rd party loan (2) obtain financing when the property doesn’t qualify for financing and or (3) extend the “buying power” of their capital contribution (down payment) to purchase a larger more expensive property by having the seller provide a subordinated mortgage loan.That’s all and good, but why should the seller agree to finance the purchase of his property, instead of getting CASH for his equity?

Building permit lists are public records that document permits issued by local government authorities for construction, renovation, or demolition projects.

,This situation might be very specific but I am needing help solving this issue.I have someone who would like to sell me their Airbnb House they currently have it under a VA Loan with the Local housing authority. it is assumable but would require me to put more down and would limit their use of the VA Loan until i refinance out of it.the Local Housing authority has been calling mortgages due to anyone they find that are owner financing homes while still having an active mortgage from them on. 

It is precisely because of mentoring programs that teach strategies and techniques to people who do not have any grasp of the three afore mentioned fundamentals that we have such a mess with “wholesaling” and “subject to” that governmental authorities are figuring ways to heavily regulate or outright ban these activities in the residential real estate field. 

I have used Cost Segregation Authority many times for my clients with great results. 

Their "local metro managers" have no authority, no access, and no way to actually help - they basically act as a buffer between the client and the home office.

This is a pointless point in this thread, nobody said a license = anything other than authorization to do a thing.