What I was trying to explain in my previous reply is that the property I was under contract for would be deemed an ADU as it legally is in compliance, but if I were to request permits to operate as a STR in the unit, that would not be allowed.

I break that cycle.I explain the consequences of an eviction to the tenant.

If you're a real estate agent, loan officer, or escrow professional:Refer clients to a licensed attorney for deed preparation.Provide the client with a blank deed form (if applicable) but do not fill it out or explain its terms.If asked to help with preparation, explain that doing so would violate California law unless you are a licensed attorney or a registered LDA working within your legal capacity.ConclusionWhile real estate professionals play a vital role in facilitating property transactions, preparing deeds in California is a legal task restricted to attorneys, registered LDAs, or the parties themselves.

You really want to explain to a jury why you ask for 2.5X, but took the white guy with 2.4X, but declined the black guy with the same 2.4X?

At the viewing, I explain that Transunion Smartmove will do a credit, criminal, and rental background check (they check the eviction database).

It's really a different mindset and attitude, hard to explain but it's just different.  

Thanks for explaining this! 

HMLs are typically small shops and you can get on the phone with the owner to ask why the deal didn't pass underwriting and they'll explain to you what you're missing.

The topic is really broad.. and you are basically asking for "tell me everything"... so I will start off by saying that there is no way we could ever tell you everything you need to know... its just too nuanced and too many variables to possibly explain in a post.  

But that may be why the lender is now trying to execute a PSA...I don't know if that is the right way to accomplish the 'refi' or not, but that would explain part of what may be happening here.