For exampleletssay your waiting on a deal to happen and the seller is going thru BOA HAFA and the agent/negotiator has submitted full package, has kept up equator tasks, been updating everyone only tone 4 months in and get HAFA approval yet didn't check if the loan had PMI and the PMI company does not participate in HAFA.

What generally works well is to set up joint ventures for specific projects where parties all desire to be equity participants.

IF you decide to get an attorney about this, get one NOT associated with Community Associates Institute (CAI) they work FOR the boards and management companies, against individual owners.

I am seeing bigger institutions getting the loan mod, get a couple of months seasoning on the payment and flipping the notes. but you have a good point for the safe act law now these days as keeping these on your own portfolio for cash flow

If you were running a business or actively participating in your real estate investment according to the IRS, then your C-Corp analysis would sort of make sense.

Or is that left entirely to the lending institution?

The real issue is not so much the forged documents of ownership, but the forged documents of ownership when the lending institution didn't actually own the property.

I say that because if rates get too much lower, I am willing to bet that financing (as difficult as institutional lending is now) will be even more difficult to get for the simple fact that there will be even less money in doing such deals for banks.

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I'm looking forward participating in any types of discussions, I'm a "Jack of all trades" and a master of NONE...