@Rick HarmonThanks Rick.You brought up an interesting point regarding the owner of the property being the estate.So would the estate be the holder of the note??

Or probably 5% private money and first lien holder.

I doubt the note holder will be willing to leave a lot of equity in the deal but they might let it go with a little equity since it saves them the cost of FC.

So, no you're looking at residential rules on a commercial building or visa versa need to identify what you're looking at first.....single family dwelling. :)

Your talking about imputed interest vis a vi the IRS not the end of the day.Who is threatening to sue YOU..

I already understood that individualized vouchers stated bedroom eligibility but you are saying that they actually state, how much Sect8 will pay for the particular bedroom specification on the card, for that particular card holder?

Are you a buy and holder or fix and flipper? 

What you can say is that the loan is assumable with the consent of the note holder, such consent not being unreasonably denied.I would assume that the note the attorney used for himself would be more than fine and simply address the interest rate, term and amortization.Watch the insurance assignment clause, loss proceeds can be directed to amounts paid which is customary for a total loss, a partial loss needs to be made clear that the note holder may release amounts as work is completed.

I would check to make sure the taxes were up to date, and I certainly would have something that has an acceleration clause.You need to be the priority lien holder and do not subordinate under any circumstance and run it though a reputable title company to ensure clear title.

If they choose to record a lien, I suggest they do so in a secondary entity or in their personal name.A second option would be to form a new entity in which you both are partners or stock holders.