They are taking all the risk, to the point they would buy it themselves if they liked it You shouldn't buy this deal even if someone lent you the money as at best you'll make $12k a year while risking bankruptcy.

Also there is transfer tax when is not a gift, family transfer, court divorce proceeding, bankruptcy, inter vivos gift, less than $100--- and other cases.   

I wonder if anyone has experience with tenant bankruptcy issue. 

They were scheduled to close escrow in a couple days only to discover the seller has a lien on the property for a debt that should've been removed in their bankruptcy 5 years ago.

Great Depression. market disruptions. a trillion dollars a year deficit spending. rumors. panics. personal bankruptcy. a lot of other unexpecteds. 

Depending on how your borrower responds could go longer if they file bankruptcy or challenged the debt in court. have you made any contact with the borrower to see if he or she is willing to execute a deed in lieu?

The owner has filed for bankruptcy every year, filed divorce twice and sued the bank for mail fraud. 

The dark gas station owner files bankruptcy and has no money for you to go after to make them clean up the contamination of their property and your property.If a seller is smart they will not sign such an agreement that they would be responsible for further testing (a phase 2) and further would be responsible for the clean up etc.

I do know the former owner filed for bankruptcy I. 2007 but it was dismissed before the foreclosure.

Winning bidders didn't perform, attorney didn't publish in the newspaper, bankruptcy, another bidder not perform.