Thanks for the warm welcome @Kenny C.My tax knowledge is somewhat limited as I mostly worked on financial reviews and audits during my time in public accounting.

They audit and re-verify loans.

CMHC is auditing a lot more after closing.  

But if you go this route, you better be ready for an audit and a fight.One other important consideration: the business has to be profitable to allow for the health insurance deduction.

They also are audited by regulators on the loans they process and approve.

A Rishel Consulting Group client has just informed us that a state regulator is now including it in their examination as well.Chattel Lender’s ResponsibilitiesLike all compliance issues, the lender must include SCRA into their Compliance Management System with a written Policy and Procedure Manual adapted by their Board of Directors or their Managing Partner(s), a training program for employees expected to assist in the compliance effort, and regular audits to make sure the program is achieving the goals set forth in the Policy and Procedure Manual with corrective action when necessary.

I looked up the deed of trust on the county website and then looked up the lender and saw a bunch of bad reviews online, as well as an audit against the company for not following HUD's guidelines and also that it went out of business in 2011. the company is called Financial Freedom senior funding corp governed by the state of delaware but did business out of irvine california. her deed of trust was executed to them in 2003. what can be done to unravel this?

Ask anyone who's been audited how annoying it is to have to prove little details that seem obvious, not to mention the CPA's invoice for having to sort your stuff when the tax man demands to open the books.

You need to know your basis in any asset you have and it is very important to know what debts you owe.If the only thing you really keep track of is income and expenses, then you may run into some trouble in an audit.

Like most things it's about risk and how it will look if you are questioned/audited on it.