Off of the purchase contract, I would verify proof of funds, ask for prequalification letter from a lender if buyer is receiving a loan, with a good faith deposit.

I actually during the credit crisis when our PDX banks froze  ... contacted them about doing a subdivision A and D loan for me... sent docs down  but I got a pre qual letter to quick and what I thought was too easy... next step was the 10k for due diligence, being a lender myself it was just too easy...

Implementing a solid skip tracing strategy into your marketing mix can be extremely valuable.  

Maybe just a stern letter from an attorney will be enough for the sellers to come to an agreement to pay something to you without having to take it further. 

I've heard mixed things on Section 8.

Not certain I am doing this part correctly -- @Bob PThe 1st letter we get is a letter stating it appears something may be wrong with a conveyance that occurs and they ask for contact from borrower to explain the conveyance that occurred. 

If they refuse, then send a demand letter.

From there, I hand wrote letters to distressed owners of properties, and did some fix and flips. 

Please feel free to reach out and message me directly on BiggerPockets with any questions you may have about the industry or how a loan officer mixes into the equation.

whatever you think the IRS will acceptAnd although nobody brings us shoeboxes with receipts anymore, your set of bank statements where your personal expenses are mixed with your business expenses is not helping, either.