They will file bankruptcy and become very hard to collect very fast.

I get to work from homeI get to work part time and last year I made $96,833.00.This investing technique is the future of investing and even if someone owes more than a home is worth the longer it takes to build equity the more money I make from the monthly income I receive.Full disclosure is very important, the benefits for the seller even if it takes longer for the price to go up and we extend the lease option the seller will avoid short sale, foreclosure or bankruptcy and continue to receive the benefits of the tax write off without the headache of being a landlord.the benefits for the buyer is they build up down payment, build their credit and the longer it takes for the value to increase the more money they save and the more they are able to build their credit and the better loan they will get.So with the lease option everyone wins and it doesn't matter if the seller owes more than the value because the future value required in the contract and the required value in the contract for the buyer makes it so everyone will profit it is just a matter of time.Marv Rousselow

Does anyone have a letter that works? or at the very least help with the wording? I dont even know how to start.

Thanks in advance,
A&M

Arrests, convictions, divorce, name changes, bankruptcy, etc. is all readily available, especially in larger metro areas where records are computerized.

If the amount outstanding is greater than $30-50k, I would hire an attorney because you can garnish bank accounts, file notices and liens, depending on the credit of the tenant they will eventually settle rather than declaring bankruptcy over such a small amount. 

I don't like the bankruptcy three years ago for candidate 1-that is pretty recent; and candidate 2 has only been in the US for 18 months, you can run a background check on them usually through the constabulary where they lived-they can help.

What about appraisals for condemnation, bankruptcy, REO, estate planning, and the list goes on.

And of course there are the few that involve crash and burn scenarios like bankruptcy, foreclosure (or both).

Since FHA loans are only given to owner occupant homebuyers, if you were hoping to use the FHA loan to purchase an investment property, your question becomes moot.The FHA loan guidelines are more relaxed than conventional loan guidelines; this includes less strict regulations about past bankruptcies and/or foreclosures, job requirements, use of alternative credit, and debt-to-income ratios.

Bankruptcy, liens, 2nd mortgages and so forth.I heard a podcast on bigger pockets of an investor filling a 2nd mortgage on the property he was leasing.