In all cases the tenants have denied taking the cash and simply said THANK YOU! 

@Manoucheka Guillaume - I am actually with @John Warren, I've never heard of FHA denying because of the building being illegal non-conforming.Is there someone currently living there? 

So, most likely, if you just bought the property and the leaking has beef a long standing issue; whoever your career is would deny the claim.

Usually they’ll just deny your loan.

Since the reassessments and attendant liens occurred after the Date of Policy, the claims were denied. 

@Timothy Hero out of curiosity, how much does an existing relationship with a customer matter in the decision to deny someone who's declared bankruptcy from being approved? 

I had a business trip to London and one to Tel a viv and one to singapore all denied  .. even with supporting documents. 

If there is an illegal unit and there is ever an issue (fire, etc.) then insurance will likely deny your claim.

A few credit unions entertained this idea but some had high interest rates, close to 5% and up even, and 10-15 year amortization (this greatly lowers the cash flow on the property), another road bump is that some denied it as the loan size was too small.

I deny her application.You don't have to rent to everyone that applies.