There are better legal ways to reduce liability, but each carries its own dangers.Example you own the LLC by yourself that holds your rental, but your spouse and you own your personal residence as tenants by the entireties, and your wife has the CDs and stock accounts in her name only.

I reached out to an attorney here in North Carolina. I was told that it is not allowed in this state. Is anyone doing this in NC?

No one said anything about to litigate all I am trying to do to see whether the big banks will follow the DF act and underwriting guidelines, and if they don't they will be exposed through the news media, and then we all can see how the DF act will apply.

Find your state eviction rules and post a "pay or quit" notice the instant it is legally allowed.

As long as they had a means of heating their home to acceptable temperatures And you fixed the problem within as reasonable time period according to state law then I do not see that you would be required to pay anything towards it legally.

- Does anyone know if it is legal to finish out these agreements since they were done under prior ownership?

I would be surprised if there were not usury laws in all states that place a legal limit on the interest that can be charged on loans.

Does giving them the pamphlet and disclaimer clear us of legal risks?

I would NOT withhold keys from the tenant when he gets back because you run the risk of getting yourself is trouble for illegally keeping him out of a residence he is legally entitled to be in.

Per lender guidelines, what makes a 2nd home a second home and a vacation home a vacation home?