They have no income and will be filing chapter 13 bankruptcy which is why they will not qualify for mortgage themselves.

There is also risk of divorce, bankruptcy or other unexpected life problems, so you need a contract to protect yourself.I would have suggested loaning him the money, but most mortgages have requirements that down payment cannot be from borrowed funds.I am honestly surprised that he can't do this deal on his own.

In my case I had enough reserves to avoid bankruptcy but not by much. 

Trump has also filed for bankruptcy a few times.

On the other hand, if you DO get an earthquake policy, your cashflow is a bit lower (but still sustainable), and you're protected against that disaster scenario (in theory, at least)....so, in that example, it seems like an earthquake policy would make sense, even if you have minimal equity (I'm guessing most investors are willing to sacrifice a bit of cashflow if it means protecting against potential bankruptcy)...Now, let's flip it around--let's say you only owe 100k on your rental that's worth 415k, so you've got solid equity. 

Also, non-guaranteeing members with at least 20% ownership will have their background pulled (0 x 30 x 12, No Foreclosures / Bankruptcies in the last 2 yrs).

We recently got denied at Bank of America for a HELOC and their decision was based on a bankruptcy that we have close to 3 years ago.

.)- Cannot be delinquent on any current mortgage obligations- Cannot be recently emerging from or entering bankruptcy- Must be a U.S.

.)- Cannot be delinquent on any current mortgage obligations- Cannot be recently emerging from or entering bankruptcy- Must be a U.S.

Many would just bail or declare bankruptcy or try to disappear.