When you employed the mixed-use test previously (i'm assuming there was a previous loan), did it meet the definition of a dwelling? If so, has he converted any of the old dwelling part into office or storage space? I'd have a hard time not reporting it (if it was previously reportable) simply because no one was living in it at the moment, but it's hard to say without knowing more about the situation.
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I'm fixin' to fix that.