I was scared something would go wrong and I thought the homes I got through them would have their realtor's seal of approval, and I'd be walked through the process knowing what kinds of things to watch out for.

to AAron the white stuff most likely is kills, used to seal in the smoke smells

And while I was considering the boot camp already, that conversation sealed it for me (he really stressed its value).

This may really help to seal the deal.

They will know the MLO's since the MLO has to put his fee on the HUD1 and his MLO seal on ???

It has already been repainted and had roof sealed recently.

Bill, wow...thanks for the explanation.The couple is from Brazil...I met them when visiting the property...and bank is Wells Fargo...hahaha.Don't risk any money on this, I agree.I know it's sort of a messed up situation, and most likely the LA is in over her head - and I don't understand why Seller doesn't have an attorney advising her what she / they ought to do, I don't know.However, I am making an offer with a price that works for me, and surprisingly this one doesn't have a bidding war (that could be because everyone sees this being a hopeless situation, or may be it's the holidays), so I do want to get my foot in the door and get this sealed, even if it's invalid I might find myself in the right place at the right time if they get things sorted out.So I submitted an offer.I put $0 EMD down now, and $0 when seller signs, but 20% upon lender approval, and 15 days to close after that.

However be prepared to repaint every 2-3 years, seal the deck, and fight the battle against rust.Ultimately we enjoyed owning our property and it did fairly well for us. 

So, I'd suggest a modification that keeps the original amount as is, cure any terms that may be non-compliant, have the modification originated by the MLO with the seal and license number stated, done as a correction for compliance.Or, fund a new loan at par as the payoff and pay your taxes.I'd also say that a seller financed note improperly originated would be viewed as a violation but also as to its intent, terms and impact on the sale transaction and who benefits and to what a cure might be.

I did notice the windows in the guest house have broken seals (dual pane w/ moisture inside) - did not notice this on the main house.