When we called the bank to ask - the bank with the 1st lien position mortgage- they said they would not be able to reveal that info. 

I look forward to seeing how the inspectors and the walk through reveal. 

As my question likely reveals, I'm new at this so thank you in advance for your patience and advice.I'm trying to acquire and restore a distressed property in a historic neighborhood of Atlanta, Georgia. 

She actually did you a huge favor by revealing her true nature this early in the lease (which is great news).This is what I call a cheap lesson.

Though now I’m curious, what else did the credit report reveal?

Often times the move out inspection will reveal items that are considered negligence.  

@Kiet Tuan Dao this is just a marketing show.

I have also connected with a friend who took interest in my efforts and revealed that her and her husband have been quite successful in flipping, possibly securing future mentors.While I I'm willing to work nonstop through these first steps, I know these things take time.

A simple cross check of the tax record and the seller name on contract would have revealed this.

It will be Obvious from the closing statement that you’re $30K short on the down payment and Yes you have to reveal it as you are listing any loans/debts.