We have loan contract and it was supposed to be a quick loan, however the person failed to continue to pay after they made second payment. 

This time I used Cozy.co background check service and it failed to uncover a prospective tenant's eviction and bankruptcy. 

You don’t want to end up in a situation where for whatever reason you fail to close, and then be accused of tortuous interference with someone else’s contract, causing the current owner to lose rental income because you paid their tenant to leave.

We see similar fact patterns every so often and without fail the deals blow up.If I understand the situation correctly, as a result of some mod program the loan amount has been reduced so the payment is affordable.

More likely you fail to adjust to market rate.

I failed to inspect the walls before the painted or I could have caught this

If you have it tied up, they can just wait for your offer to fail to close and then make a similar offer to what you had.

Fail to see the reward here for assuming a higher amount of risk...

FYI- looks like prop 10 is going to fail.

I read this section over and over as it gave at least a road map to how the domino's fell the last time we had this collection of challengesSecond Ray was big on the following process: Set and Execute on Audacious Goals, Fail, Learning Principles, Improve, More Audacious Goals ... cycle continuesIn the end a great read and again I find it so sad that I had not heard of Bridgewater or Ray Dalio before I picked up his book.Z