In order to qualify for an FHA loan the property needs to satisfy certain set of criteria, like not having physical deficiencies or conditions affecting its structural integrity.

A solid building with out deficiencies or properly budget for those deficiencies8.

A local bank is MUCH less likely to forgive the deficiency, and much more willing to foreclose and take their chances on an REO sale.

The Home Inspector report revealed major deficiencies in the rehab and the Home Inspector told me that the rehab was like “putting lipstick on a pig”.

That to is an imposibility to perform and the reason guarantors are used and accepted, to cover deficiences of an applicant regardless of the reason they can't meet some requirement.I made that a 5 years as a point, 3 years of acceptable credit can be tough to meet by any tenant.

Without having reviewed the documents I assume you guarantees were to guarantee any deficiency from the note.

. -------------------------------------------------- In the future, when negotiating in Florida, or in states where their is a deficiency judgment allowed, the bad debt market will net lenders more due to the judgment.

She may not have the same interest, but does she compliment your deficiencies?

One point to keep in mind is there are about 12 states that are non recourse meaning bank cannot go after borrower for a deficiency judgement

Perhaps the deficiency idea is a little less understood but it is a real and largely present issue as well.