IRS rules were modified a while back so there is no longer a 1099 for the forgiven income, so that's no longer an issue on primary residences.

You can accept a quit claim deed from the owner or allow the owner to sell it at a higher principal amount to allowing a new buyer to assume part of the existing note as modified, which remains in its current lien position.

I also modified a couple of the life spans for what I am actually encountering.  

Greetings;I am wondering if can modify a lease agreement (1 yr) with a new tenant after firing the old PM?

This will still be considered a passive activity under either method, so based on your modified adjusted gross income the deducibility of losses will be limited."

So possibly a stupid question but IF I was able to convince the bank to allow me to assume the loan and modify it so rather than having a big chunk of arrears, they adjusted the payment and I'd pay it off during the course of paying the current loan, and IF I was able to do that for no (or modest) money out of pocket, would it be a good investment to own if there's no equity BUT it cash flows?

Now you have two separate individual note holders, the DIL can be split for the debts owed.I agree with Dion as well and didn't mention it, but take care in communication with the owner, might approach as a private lender not as a guy modifying existing debt.

If the building is not heated properly, this can lead to structural damage of your property.If you decide to accept this tenant, with his non-conformist ideas, at least make sure he maintains adequate renters insurance and modify the rental agreement so you are on the same page.

If the agreement has been modified, then you may have an issue.

I plan on hiring an engineer to come up with a idea of what can be done to modify the space or even to knock it down and build a new one eventually.