In polite ways, I let them know they probably should be glad their polices weren't cancelled as a result of the loss, and I couldn't find anything less expensive. 

Then there was the time the police got called because the drug dealer intentionally drowned their dog in the pool.

Right or wrong will be in the eyes of the new owner and his offer will be dependant upon his assessment of the situation.You can either accept it, or wait until you are forced out with no cash and a possible police record depending upon how you act to the police who will be there to see that you leave.

I'm trying to determine if the laws behave similarly to SDIRA laws, in that you or your lineal descendents (or ancestors) cannot receive any direct benefit, or if the laws apply only to the borrower specifically.

In any case, between Vegas and southern Wisconsin I have been a police officer for just over eleven years.As far as real estate background, back in Wisconsin (about 2005 or so) I became very interested in real estate investing and started looking for a home to repair and flip.

The police or what?

But honestly disputes between neighbors could easily be resolved by the police. 

Josh and Brandon and moderators police for site rule adherence, not for bad business models or even known scammers.  

After leaving the USAF I was a Police Officer for two years.

I had a crew working on one of my houses the other day and the neighbor called the police on them.