Then as more time passes the less interest they have in buying...He's playing a nasty game...Sadly, he's winning...I'm trying to think of a way to sell with the MINIMAL amount of involvement on his part...Maybe sell the place and then AFTER the sale, then tell the new owners to call him...I'm getting tired of this...

I think their issue is that they view my initial loan with my aunt as a cash out refi because the HUD settlement statement says I paid cash for the purchase.I tried explaining that I paid with my aunt's cash that was loaned to me - as evidenced by the mortgage note - so it was not a cash out but they simply don't want to budge.What is frustrating is that they had the original HUD settlement for over 2 months and never said it was an issue.

I know other family members who work a regular JOB.Their mindset is put money in savings in case of a medical illness or rainy day fund.Take 1 or 2 trips a year with vacation and that's all they aspire to be.They look at me and what I do and think "I am lucky" or "I have it good" that I have my own business.They think I sit at home in my office all day and do nothing.They do not realize I am putting in way more hours than they could imagine.I am sacrificing now so that down the road as I get older (36 now) I can take it more easy.Meanwhile many of these (savers) will be working as a greeter at Wal-mart at age 70 and complaining about social security not being enough.I am not going to be one of those statistics.A family member that is 68 has their house paid off,car paid off,and with social security still lives hand to mouth.I try to explain they need to grow that money to stay solvent but FEAR is what grips them from making a move.Whatever everyone believes we know we are born and in a certain amount of time we die.Where we go after that is up to each person to decide.So you do not have time to let FEAR keep you from making rational decisions and not living life.There is risk in everything.Successful people taker calculated risks and on average win more times than they lose.I guess I would be 4 and 5 since I have my own money but also buy property using owner financed deals.

You can opt to undercut those prices, maybe simply do an 8% fee.That will get you in the game... and put a little cash in your pocket.

I'm by no means an expert, this is simply what I have read and heard from various sources over the past year.

When a property is redeemed, this amount can be claimed by the winning bidder.

Would it be easier to find the house, assign it to my buyer, and simply make the loan?

If you are not taking in any rent you may consider this a second home and deduct mortgage interest and real estate taxes as if it was simply a second home.That would be why they cannot depreciate it.In some cases such as additional depreciation allowed on business(non-rental) assets you may take additional depreciation the first year.To summarize:They will not be able to depreciate it unless they are in a for profit activity.

Why not simply get the home appraised and do an FHA at appraised value, giving the bank 3.5% down and completely eliminate the owner from the equation?

After all the original FHFA RFI was geared to "all" solutions, it is simply curious that so many came back with the same ideas that were already "floated".Anyhow, the 8% is of course relative also, is it an unleveraged return using leverage monies, is it guaranteed risk free, is it including capital appreciation, etc.