Originally Posted by jmason
What is an "arms length transaction"?
Selling property to yourself or to a relative will almost always be questioned.
You will need to have an appraisal of the properties worth, perhaps two or three by disinterested companies to determine that your value of the land is fair and at a price that a "stranger" would pay for it.
Selling it to yourself too cheaply and you don't need to pay taxes on it. Sell it too high and the mortgage is worth less than the bank thinks it is. ( like all of the fraudulent appraisals done in the last 10 years during the housing bubble )
I have been out of the mortgage business for about 15 years so really can't give advice on current business practices.