You can contract in your own name but most banks wont Accept your offer because there is liability with a bank selling REO to individualsNote that this is just a basic explanation and there are more moving parts but you should get the ideaIf you want me to explain it in detail just let me knowAll the best

There will not be any liability unless they have already used their entire estate exemption of 5.34m each.Please ask if you need a further explanation.

Thanks @Jon Holdman for the excellent explanation.

Ahh I think I got what you're trying to say it is different how rental income is calculated when the subject property is owner occupied or non owner occupied, explanation below.To clarify:For rental income on a Non owner occupied property (which I believe this is)right 800 income - 800 liability is $0 to make the borrower qualify for and you divided it by 0 because he has no other income so the ratios are 0/0 if gross rent was 1066.67.The 800 Income after being discounted by 25% is netted against the 800 PITIA = 0 effect plus or minus to the borrowers scenario.For rental income on a primary residence:What your implying is how rental income is calculated if the subject property is a primary residence then yes it would go as you had mentioned because the guidelines do not allow the borrower to net the income against the monthly obligation so income would go in the income category and PITIA would go into the expense category similar to what you mentioned 800 / 800 = 100 DTI (debt to income ratio).

I dont think they went over it but I think it really needs no explanation.

.: That is an excellent explanation.

After explanations, negotiations and assurances were made most all backed off.

If it sounds fishy, be sure that a lender will want an explanation of your motives.An important fact to consider is that home equity lines of credit (HELOCs) are limited to 80% loan to value (LTV), with some credit unions going as high as 90%.

Thanks for your explanation, George P.And good point - with your numbers, the tax advantage is in your favor.

That's just plain condescending, and unless there was some reasonable explanation that came with it, it was obnoxious as well.As for the lender, that may be reasonable.