@Bill Brandt one comment --- since its a flip, he'd have a tough time declaring it as an investment. 

This appears to be nothing more than a strategic short sale of sorts….declaring BK solely for the purpose of breaking expensive leases in a down market

The guarantor is on the hook for the absconded money.The same thing could happen with funds that were intended to be used to renovate the property.If the borrower committed fraud in applying for the loan, the entire loan can turn recourse.If the borrower declares bankruptcy, the entire loan can turn recourse.Certainly each loan is different and carve-outs vary, but just because it's a non-recourse loan doesn't mean that a guarantor gets to collect a fee and rest easy knowing that they aren't on the hook for anything.

., and " called"or "accelerated" his loans (meaning all the principal and interest became due immediately) and he was forced to declare bankruptcy.   

I'd push back on the underwriter and ask to see their guidelines that say every home with 2 kitchens is declared a duplex. 

I've got bad credit which I'm also in the process of fixing and in debt so I kinda see this as the perfect vehicle to exercise my investor mindset muscles. 

Thanks for your responseThere used to be 29 Palms there, but after decades of the US Army using it as an ordinance use and testing site, now there are only stumps.When the Army declared it uninhabitable, the Marines called it home.

I really don't want to spend that amount of money to declare 0 lol.Many thanks for you help !

Some evictions were for non-payment of rent, and even without declarations from the CDC, the judge was very much interested in the Landlord and Tenant working out the payment issues in creative ways. 

Can/should we declare these costs on the LLC's 2017 tax returns even though they occurred in 2016, before the LLC existed?