Big concerns are bankruptcies/repossessions/evictions and crimes against people/property.

Their provided credit scores (as of 9 months ago) are decent and there are no reported bankruptcy cases, but they are all located in Connecticut.

No evictions/bankruptcies/ unpaid judgements We tell them we will run a background check and handle felony convictions on a case by case basis in order not to run afoul of any disparate impact claims.We publish this in all of our ads, the tenant questionnaire, and their application. 

I have a tenant applicant who answered YES on my application form whether he/she has ever petitioned for bankruptcy. 

Otherwise you have what is referred to as a snowballing effect.Example those who file bankruptcy maybe only 10% finish the plan and get discharged 3 to 5 years later.

Life Company Carveouts basically say that if you file for bankruptcy, commit fraud or misrepresentation, or have an environmental issue, the recourse is triggered.

(LOL)Let's get back to paying our own insurance premiums (mine is more than you probably get for rent) or should we expect medical bankruptcies take off again.

Sometimes, clearing the defect involves going back to the court/judge if the original documents can't be produced, and the process begins again.I recently had a closing on a bankruptcy short sale that took about 8 months from contract to close.The disbursement of their escrow deposit will depend on the contract terms, but most real estate contracts call for the deposit to be returned to the buyer if free and clear title cannot be delivered.Home inspections, surveys, insurance binders, etc. are most likely sunk costs that they will not get back. 

The use of single-member LLC to hold title to individual real estate assets (as opposed to multiple properties being titled in the name of one entity or individual) is used to limit liability risk, creating “bankruptcy-remote” special purpose entity standards, and also to facilitate tax-deferred, like-kind exchanges under Section 1031 of the Internal Revenue Code.

This stuff can be confusing as hell for a practicing lawyer, let alone someone who knows nothing about the law.Interestingly enough, the area of law one is familiar with when creating business entities is not where you will find cases deciding these issues (that statement is a little misleading because any given court usually has cases touching on a wide variety of subject matters: most courts are not limited to special subject matters - except bankruptcy....)