if so, then you are exempt.despite your modifications, it sounds like your townhouse is still classified as one unit for tax purposes, so this would classify as a house hacking situation, which is exempt.

I could hire out structural modifications to add needed egress windows and strengthen the shear walls and rough in the breaker panel,  then frame the place myself, pay somebody to drywall it,  then install the kitchen and bath stuff and probably have a unit ready to go for someplace around $50K.   

I also look at it as an opposite where if someone is wanting to spend too much time on the walkthrough looking for any issues I see them as someone who is too picky and likely to want modifications which I won't do so we all have our biases I guess.  

Originally posted by @Marco Calderon:That is something my attorney and title company would pick up in their searches right  Sometimes there is an unrecorded non-interest bearing 2nd lien from a loan modification.

Was looking online at Commercial Releif a company that provide depreciation acceleration and loan modification services.

Lenders often do BPO for other reasons prior to foreclosure or even when reviewing for a modification.

The third I believe is loan modification.

I know that having a system to automate lead generation is the key so I am exploring social media and will focus on those strategies for the next 6 months.that is awesome and there is a lot of content out there for social media lead generation as well. yes systems are very vital to consistent lead generation and that part remains unchanged regardless of what strategy or game plan you have for real estate investing.  

It is sad but it seems that these people had no idea what they were really agreeing to when they signed the modification.

My first article "Google Analytics for Loan Modification Websites" is a approved one http://www.biggerpockets.com/articles/954-google-analytics-for-loan-modification-websites while the recent one which i wrote next "Designing Google Adwords Campaign for Loan Modification Websites" is unapproved.