For the second one,  POL says the title was a fraud ( so much to the due diligence this company did).

Sounds like we’re pursuing an almost identical strategy, even down to targeting 2030.

(The fact that a properly worded Sub2 agreement doesn't legally oblige you to make those payments does not protect you from being sued for fraud, etc.)

Not to say you committed fraud, but you have inadvertently violated the terms of the mortgage, and with the violation, the mortgage could then be declared void and due in full by the bank.

(The only reason you would be banned by HUD would be if you committed fraud against them.)  

The bank isn't going to take the property unless the bank is the high bidder at the sale.You need to become familiar with the NJ Foreclosure Rescue Fraud Prevention Act before you make some mistakes.

Not justifying lying or fraud. 

FYI, you must live in the FHA home for one year to avoid mortgage fraud, etc.So depending on your living situation, you being a Westsider in Brighton, search Waterford, but the more premiums will be in Novi, Northville, Plymouth(most inventory).  

I ended up paying $3K in fines and now I am having him prosecuted by the NY Attorney General's Office of Financial Fraud.

He is telling you to commit mortgage fraud.