There are concerns with this practice as a DIL can cause a merger of interest in the real property and negate the security and superiority to other claims that the Mortgagee had prior. 

good info from @Douglas Snookhowever if it is a property that I am buying for myself I go to the Registry of Deeds myself and trace every single deed back, just to cover myself, get a history of ownership and to make sure no easements, liens or concerns get skipped by the attorneys, have had problems in the past so I like to know the answers before I start asking questions...just my opinion ! 

It's all in the numbers as far as lenders are concerned.  

I was talking about POF that accompanies your offer to purchase or like in our market what is SOP is you should have it with your offer.. if you don't and other offers do have one yours will go bottom of the line.... or the seller will accept with 48 to proof up.for us when we are selling our new construction homes.

Steven,This is a concern I have.  

You can post any question or concern on here and get genuine advice.

They will do a commercial loan on a residential property and they are much more concerned with whether the unit will cash flow on paper (if you have tenants in there with leases it helps a lot) rather than your DTI.

Don't get me wrong, I know how dumb of a decision it is - I'm mostly concerned about the potential liability if something were to go wrong and a fire were to start.

I'm concerned that without a new signed document from both parties when move out time comes I may have no recourse if there is damage that happens from this point forward.  

Lastly, look at the disclosures that should accompany it.