There is also the option of cognovit notes, recognized in many states including OH where I primarily lend, where the lender can basically represent the defaulted borrower in court and essentially get summary, expedited foreclosure treatment (oftentimes without the defaulted borrower even being aware).

I actually do have some faith in our political system, it's true politicians are avoiding making the tough decisions leading into the 2012 elections, but they all recognize we have some major problems so after 2012, whoever is President, there will be some agreement on a debt-reduction plan that should put us on a better track forward.

Recognize, analyize, plan, execute.

The remaining sibling changed the LLC to a Single Member LLC and owns the property 100%.I sat down with my CPA during the summer and went over Capital Contributed (this includes Cash Contributions, my share of Land/Building Value and Depreciation); Income Recognized, Distributions, Losses Recognized and a Capital Bal at 12/31/10.

Matt, Not knowing much on the CA area, I will speak in generalities.Know the value, on something like this with a 5/1 ARM you are gambling plain and simple, your rolling the dice on your bet that in 5 years time you will be sitting in XYZ position, the financial industry will be XYZ, housing industry, local market, YOUR income, so on and so fourth.

Real also recognizes real, so to speak.

Not sure this would work for you since you recognize that your purchase was below market value. 

No sorry @Eric Gamble.

If this argument would hold up, the installment method would not qualify and the seller is at risk of having to recognize the entire $50,000 gain up front even though he won't receive payment of the purchase price in the first year.

The symptoms, pain, swelling, over weight, cancer, diabetes, high blood pressure, heart problems, and others are merely symptoms much like smoke detectors in your house letting you know that there is an “underlining problem” which needs to be recognized and dealt with.