@Opus 17 wrote:
....You must be prepared to prove, if audited, that your parents really do intend to foreclose on the home, kick you out, and sell it to someone else, if you stop making payments.
To the best of my knowledge, this "requirement" is found nowhere in Section 163, the Regulations promulgated thereunder, or anywhere else in the Code.
Even assuming there is such a requirement, proof would be almost impossible to provide other than a notarized letter (e.g., affidavit) stating that the lenders really would foreclose if the terms of the loan were violated which, in a very real sense, is a tautology (the recorded mortgage (or security agreement) states exactly the same thing).
