She would owe taxes (and penalties, if applicable) on the value of the account that made the loan.See Pub 590 Prohibited Transactions

I've purchased about a dozen short sales, and the price the lender will accept generally has nothing to do with the list price or what the seller owes.

my brother and I live here now,it's been 6 months owing it.

If you ever get a tenant that owes you multiple months rent you will sorely regret this policy.

I'm just looking for a logic check, not actually trying to get to the exact $ on this.Idea Take a 401k loan @ 4.25% to pay down the principal enough to get me under the 78% threshold on month 60.Month 60 with no additional payments made prior I would be at $149,800 or 90.7%. 128,700 is the magical 78%.

Lender gets everything at payoff, principal plus unpaid interest, plus payoff demand fee, plus recording, plus etc.

This way if they life happens they owe 2 months rent and 2 months notice.

Now they not only owe rent, but late fees.After I think 5 business days and still no rent, you go and file a "Warrant of Restitution" form.

.$80k back taxes owed for all four lots..29 acre and .27 lots full of junk.

If they are a great tenant (i.e keep the place clean and no problems except money) you might want to consider keeping the tenant and create a payment plan for the missed month.Could ask for a minimum/partial payment partial payment for December and then spread the amount owing across the remainder of the lease....benefit here is that you can ask for a higher minimum payment the next month since the rent will be slightly higher.