This clause gives the mortgagee the right to accelerate the balance due if any interest is granted into the property.

To properly analyze, you need to know everything about the property.

I usually have that age vintage in the 8's or 9's.They have and incredible amount of operating expenses with vacancy.28 units managing from afar does not allow proper structure in place for a full time manager and maintenance person.They have at about 61% but if other capex or problems are coming that cap could go to a 6 etc.I do not know that are so if it is in an amazing area and sitting on a bunch of land the dirt might make up for it.

Compare the APR for proper evaluation.

just trying to set proper expectations and to see if I need to plan on finding more income....thanks in advance.

That means, if the property is sold then the balance of the loan is due and payable to the lender.

I am looking to live in the property so it sounds like I should have my parents "gift" the money to me and then finance the remaining balance myself?

Yes - my realtorAnd that's exactly what I expected- I sent them back to the showers to get a proper one

for example:Property Value: $100kSeller Mortgage: $100Kyou obtain the property on a subject2, you then turn around and sell with a wrap with the following:Sale Price: $110K (premium due to owner financing)Down Payment: $20KYou then carry a note for $90K that the buyer must pay offYou then apply $10k of the down payment to the wrapped lender, bringing the wrapped mortgage balance down to $90K, the same amount as the note you are carrying.In addtion to all that, the terms on the new note are created to give you a spread between the wrapped PITI & the buyers PITI (assuming that taxes & insurance are escrowed in).So, after the closing you have created (and extracted) $10K (minus any closing costs) in equity from the deal, and you also are now receiving monthly cash flow via your note and you have no property upkeep.DISCLAIMER: I have never done one of these, this is all academic.

This happens all the time, is not unethical or criminal, and you should not file a complaint.Here's the mentality of the other side of the transaction:1) Man, it sucks that I need to short sell my home, especially now that debt forgiveness is no longer protected in 2014 due to expired legislation.2) I had better market it properly to make sure the short sale is approved.3) I had better vet the buyer properly to make sure they close the deal.4) I would prefer a cash offer to a financed offer.5) Cash offer from someone I know is accepted.That's it.