Some states will say they are reciprocal, but have policies in place that are not written anywhere that might prevent you from getting a reciprocal license.

Many owners can't come out of pocket that much money and this is what prevents deals like this from being put together.

Andrew and John both made great points, and there's way to stay ahead of things to prevent bumps down the road....again, if the lender is very well-versed in VA and is efficient. 

Prevent them from finishing performance? 

That's enough to prevent them from trashing the place or stealing appliances.

@Greg Deane see if they have been in arbitration yet, if no you can assume that is a good probability that could happen if that does it would prevent you from selling, or only cash offers. 

If you own something directly in a major metro, and it is not too much of a financial pinch to prevent you from steadily adding to the portfolio in a less expensive area, keep it.  

Which is what prevented us from getting a loan through that site. 

A borrower could also have a prepayment penalty or lockout that is preventing them from refinancing now.

It does not prevent the owner from a subsequent claim against owner if there is proven negligence.