However, there are mitigating factors a lender/underwriter can consider. 

Your creditors will shut your lines down and report to the CB agencies that you are paying thru a counseling agency/on a Loss Mitigation plan.

Any one of those can mitigate your risk, but some are easier than others.

So, mitigation is the more profitable action to exhaust first.I think best play involves typing up Brothers share and bulletproofing deal without much of any cash now.

I've done a lot of research on mitigation and have tried several techniques.

It was sent to me by the Loss Mitigation specialist at Litton.

Thanks everyone...one thing to add if you don't mind, do you all think that tile upstairs would better mitigate any water issues from the usual suspects, toilet leak, sink, I have seen it all....I mean as opposed to carpet or wood upstairs.

Unlike some that like to assign "blanket" risk dollars to every potential deal, i evaluate and mitigate my risk on a case by case basis.

There is a huge push back by state and local officials against upfront loss mitigation fees.

In some states there are mitigation of damages clauses that require you to attempt to find a replacement tenant for her since she moved.