If you did not get one from your reporting agency, then there was an earlier post that gave one, or you can use one I posted:http://www.biggerpockets.com/forums/52/topics/90852-tenant-screening-uncovered-duis-jail-time-etc?

@Ed Kahle , I don't think you'll have much success creating motivation, so just focus on finding more leads until you uncover motivation.  

He even showed me where my numbers were flawed.

It is not surprising to me given the scope your business has that you seem to do you uncover these hopefully unusual types of situations. 

Well, a few comments, not a book this time.Risks can come in various masks, borrower takes bankruptcy, the sale was flawed or originated improperly which can be missed, court tosses it out or does a cram down, reducing principal and the court may bar any deficiency.

. :)Tiger, I'm seeing your valuation process as perhaps a conventional bond approach, financially logical but IMO flawed if you're assessing from the point of view of an IRR  to some degree as in notes, having a valid opportunity cost of like investments is difficult to arrive at.

LOLCome on, list your favorite 4 out of 12 ways to uncover owners hiding out.

That said you did everything right and limited your liability (I am not sure how much out of pocket expenses you incurred but I usually include in my contracts that I might get some financial relief on my inspections if I uncover a like same disaster and I put out $ for further investigation).

It's just flawed if a contractor can do select items and not do others.

Fortunately the 1910 tax bill wasn't much money and there was no title insurance involved.In a case where I bought a property got title insurance owned about 5 years and sold it, there was a title claim uncovered by my buyer's title search.