The government passing the Tax Reform Act of 1986 is totally unpredictable.

-The existing loan is not currently a government backed loan (7a, USDA B&I, HUD, etc).

Whole new idea, after being in a government job for so long.

A modification should be used after the note has been made and filed for record as a seperate instrument stating the specific terms to be changed or modified and filed at another page in the books of the real estate records with reference to the original filing by book and page or the recording system of that government recorder's office.

Closed on it June of last year, last month to qualify for 1st time home buyers, although i had to fight with the government to finally get the FTHB credit, had to prove other assets were used for rentals and such.

The governing documents state what can and what cannot happen.

The government released information on May 29, 2009, stating the credit can indeed be used as a down payment.

It's only bad when the government tries to step in an control the economic forces at work by injecting capital into businesses that don't much much chance of long-term solvency...which is what was happening at the beginning of this year.

Havent done much research on it besides reading the actual government publication.

Regardless of the situation with the lease, they are your tenants, and are governed by some set of landlord/tenant laws.