I forgave the arrears and modified the 1st position loan to 75K at 9% over 30 years. 

How do I modify the lease?  

From what I've seen servicers execute modifications "at the direction of" the lender which implies it's the lender ultimately negotiating the modified credit terms.

One thing you could do here would be to do a modified house hack and buy a house with 4 bedrooms by state and rent out three of them at 700-800 each, then rent out all 4 and move to your next house.

So I just modify the three day notice to be a Three Day notice of Termination of occupancy. 

Exception01 Qualified retirement plan distributions(does not apply to IRAs) you receiveafter separation from service in orafter the year you reach age 55 (age50 for qualified public safetyemployees).02 Distributions made as part of a seriesof substantially equal periodicpayments (made at least annually) foryour life (or life expectancy) or thejoint lives (or joint life expectancies)of you and your designatedbeneficiary (if from an employer plan,payments must begin after separationfrom service).03 Distributions due to total andpermanent disability.04 Distributions due to death (does notapply to modified endowmentcontracts).05 Qualified retirement plan distributionsup to (1) the amount you paid forunreimbursed medical expensesduring the year minus (2) 7.5% ofyour adjusted gross income for theyear.06 Qualified retirement plan distributionsmade to an alternate payee under aqualified domestic relations order(does not apply to IRAs).07 IRA distributions made tounemployed individuals for healthinsurance premiums.08 IRA distributions made for highereducation expenses.09 IRA distributions made for purchaseof a first home, up to $10,000.10 Distributions due to an IRS levy onthe qualified retirement plan.11 Qualified distributions to reservistswhile serving on active duty for atleast 180 days.12 Other (see Other below).

Our reviewer asked us to modify the existing structure to meet the code requirements of R-2 bullrings (Remove windows, parapet on the existing roof, etc.).

There can be an issue if you use other's money, if you begin buying and selling notes making more on transactions than investing as that becomes a business issue, if you originate a note, if you modify a not you don't own and in some case even if you do own it, if you service notes you may have loan servicing issues.

Note Buyer" some time ago and I brought up the issue of selling a note that was not properly originated.Will, if your note was seller originated and you can show that the note was exempt I'd say it would be fine.Making a new note is not the way I'd recommend correcting an equity based note, rather modify the existing note and brining it into compliance by an MLO if necessary.

I have become a note investor specifically to gain access to both performing notes and these non-performing notes that can become my "personal REO" through foreclosure or DIL (if borrower is unable to modify their loan).