Trouble is the penalties for securitiies violations are much stiffer than speeding tickets.

The penalties are severe for not doing so, and the Treasury Department has stated they intend to "back look" to the date of required compliance no matter when someone shows up to examine compliance.

And if there is a balance in the security deposit after a move out, state law in most places sets a deadline for the landlord to return the deposit remaining or else the landlord faces money penalties - so the landlord will return that money to the party that is now responsible, which is the executor.

We also need to increase the penalties for those that are actually guilty of sex crimes and keep them away from the public.

Based on what I have read I doubt either would have owed any taxes, but decades of fail to file penalties are a little daunting.Anyone have any experience with this and can tell me what to expect, how to start fixing it, or if just pretend I am still in ignorant bliss?

Is there an early pre-payment penalty?

I can pay it off anytime with no prepayment penalty.  

From the start of TRID this has been an issue and we prepared buyer-side and seller-side CDs only and lenders were facing stiff penalties for violations. 

@Mindy Jensen  is the 121  queen I myself have done it 6 times since I bought my first home in 77.. and will do it one more time before I call it quits.. now I was fortunate that all of them were in the SF bay area and 2 were in Portland.. so I have literally made millions tax free..the specialness of this is unlike when you own rentals there is no recapture and huge penalty when you sell.. you sell get your gain tax free no recapture its by far the best treatment in the US real estate tax code in my mind other than or equal to 1031 if your goal is to roll up and give to heirs at stepped up basis.but yes many builders have done this over the years.and yes you can value add you can do what ever it just has to be your primary and live there 2 of 5 years.. they darn near changed it to 4 years in the new tax code but it got bounced last minute and remained the same.. so in my humble opinion yes its common and maybe a lot of folks don't know it.. but it is truly special and sure has treated me well personally.now if you live in an area were there is limited to no appreciation its not really a factor.. if you bought a home for 120k and sold it 15 years later for 160k  well not going to make a huge differencebut for those in areas likeCA  WA OR  Austin parts of Chicago Boston DC  Miami Charleston etc etc its HUGE>

...it may also be useful to emphasize that the lease is an X month term, and that if the tenant wants to vacate early, then there will be penalties of X, Y, Z.