According to the IRS rules, if you spend at least 750 hours on your real estate business, and more time than any other job or business, you are considered a "real estate professional" and can deduct the losses as active losses against active income.

You'll likely continue to hear different stories, for the simple reason: Different Lenders = different rules/overlays!

The 'foreclosure' was on a conventional loan so the 7 year rule seems to apply.Anyone in my situation or something similar been able to do buy and holds without those traditional bank options available?

Not to mention the fact that $160k to $250k in the next 5 years is not likely to occur as we are at peak market prices and short of a major break through in technology and jobs, salaries won't support that without a significant correction first.

I am not sure what the rules are but the moderators probably don't like you posting the same question under different forums.

@shah a I live and invest in Detroit the rule of thumb is the closer to downtown the more expensive.

I'd look and see if you can find good comps for it and use those to support your case when trying to cash out.

On your specific question I'll follow the discussion to see what the attorneys out there will say, but the agent is the real estate license holder, as issued by the state, not their company if they incorporate... so I'd imagine that "pierces the vail".But tangentially there's also the MLS rules for agents. 

Failing to follow the rules can land you in jail, not just civil court.

There are so many problems with this before even looking at the rules and it seems like you are looking for a way to make it ok and there will never be.If you are the listing agent you are NEVER bidding on the property, not through someone else, NEVER.