This one is entirely different and I post the info so you can see the difference.
Husband and wife buy property in 1996 for $72500.00.
They mortgage it in 2001 for $82875.00 - subprime.
They also divorce in 2001.
Mortgage foreclosure in 2006 with funds due lender $95876.22.
Sheriff's deed to lender in 2006 $2811.00.
Deed to our current seller from lender in late 2006 for $49,900.00.
Pending agreement to our buyer now for $119,500.00.
I have no problem with this scenario. I will report it to the lender with the flip note and I know the lender won't care either. This is a perfectly normal recovery out of foreclosure.
Can you see the difference between the two transactions?