I'm by no means an expert, this is simply what I have read and heard from various sources over the past year.

Would it be easier to find the house, assign it to my buyer, and simply make the loan?

If you are not taking in any rent you may consider this a second home and deduct mortgage interest and real estate taxes as if it was simply a second home.That would be why they cannot depreciate it.In some cases such as additional depreciation allowed on business(non-rental) assets you may take additional depreciation the first year.To summarize:They will not be able to depreciate it unless they are in a for profit activity.

Contact a reputable short sales agent and see if they will give you a cut or have them negotiate it and wholesale it.

Why not simply get the home appraised and do an FHA at appraised value, giving the bank 3.5% down and completely eliminate the owner from the equation?

Finally, I would look to make real cuts to our budget and everything would be open for discussion, including military spending, social programs, etc.

After all the original FHFA RFI was geared to "all" solutions, it is simply curious that so many came back with the same ideas that were already "floated".Anyhow, the 8% is of course relative also, is it an unleveraged return using leverage monies, is it guaranteed risk free, is it including capital appreciation, etc.

The truth is, the recent temporary extension of the payroll tax cut is being funded by a "small fee" tacked onto governemnt backed mortgages (30 years of extra fees for homebuyers from now on [and probably forever] to pay for a temporary - 6 months - payroll tax cut).

You would simply say "based on an appraisal performed at the time the option is exercised".

Also, parents may pay a premium for their children to lease properties close to campus because they can cut down on commuter expenses.