The idea is to borrow the money to pay off the underlying lender to cure the Due On Sale.

In order to defer all of the tax, you must purchase at least as much as your net sale and use all of the proceeds. if you purchase less than what your net sale you would have to pay tax on the difference, and you would shelter whats left of the gain. 2.

@Seidy Lasker Wash sale rules apply to stock options if they are deemed "substantially identical" to a security sold at a loss within 30 days, such as options with similar expiration dates or strike prices.

Seeing out there if anyone has any reading lists or content suggestions for sales or negotiation in Real Estate.

That means paying all cash isn’t an option unless you plan to bring another $600k to the table. . 

The "due on sale" clause is a non-issue here. 

DR Horton in Vegas absolutely will not give you a discount on the “sales price”.

You may want to pay an appraiser to determine the value at the time of inheritence.

For example on your $400K sale it might look like: 20% down of $80,000, 65% LTV 1st of $260,000, and a 15% 2nd of $60,000.

Use that loan to pay the back taxes and get things under control.