The letter stated he was obligated to tender a defense for the buyers due to the statutory warranty deed and to contact the office immediately.We contacted an attorney on his behalf and he sent off a letter to try to figure out what next steps would be.

@James Nguyen There's a local company that specializes in servicing owner-finance notes.

Further, if disgruntled investors sue, the sponsor has a “definitive defense” as well as a “statutory defense” in a lawsuit.

But that’s a gray area and probably not worth fighting over.Most stick to deducting only the clear, defensible items under §1950.5.What to do:Gather invoices for:Water reconnection feeAny charges related to nonpaymentPrepare an itemized deposit statementInclude receipts/documentationMail within 21 days via certified mail or a trackable methodThat protects you and keeps everything compliant.

Also, be sure that the chosen company offers consulting and audit defense at no additional cost to you if EVER audited. 

Aloha @James Potter,I am late to the party, but checking to see if you ever made any movement after this post.

But I got battle ready in full defensive posture. 

Hey Hey @James Friar - That's a challenging space to get into from the get go, but no impossible. 

Thanks James..

Quote from @James Jones: Quote from @Jay Hinrichs: Quote from @James Jones: Most investors start falling apart around unit number six.