I thought the "tool of last resort" is adverse possession?

These notices, known as “adverse action reports,” are a requirement of the federal Fair Credit Reporting Act.

This isn't for the risk adverse, but there are opportunities here.  

@Gerry RaeThere is a thread herehttp://www.biggerpockets.com/forums/93/topics/1847...Arizona RegsDisclosures in a Transaction:In accordance with the Commissioner’s Rule, R4-28-1101 (B), a licensee participating in a real estate transaction must disclose in writing any information the licensee possesses that materially or adversely affects the consideration to be paid by any party to the transaction, including:Any information that the seller or lessor is or may be unable to perform.Any information that the buyer or lessee is or may be unable to perform.Any material defect existing in the property being transferred.The existence of a lien or encumbrance on the property being transferred.In accordance with the Commissioner’s Rule, R4-28-1101 (E), a licensee shall not act directly or indirectly in a transaction without informing the other parties in the transaction, in writing and before the parties enter any binding agreement, of a present or prospective interest or conflict in the transaction, including that the:Licensee has a license and is acting as a principal.Buyer or Seller is a member of the licensee’s immediate family.Buyer or Seller is the licensee’s employing broker, or owns or is employed by the licensee’s employing broker.Licensee or a member of the licensee’s immediate family has a financial interest in the transaction other than the licensee’s receipt of compensation for the real estate services.In accordance with the Commissioner’s Rule, R4-28-1101 (F), a licensee shall not accept compensation from or represent more than one party to a transaction without the prior written consent of all parties.NOTE: The above listed disclosure issues reflect only those requirements in the Commissioner’s Rules.

Not sure if you are following but its starting to seem likely that 1031 exchanges will be limited: https://firstexchange.com/ProposedTaxIncreasesforRealEstateI can imagine the adverse effects this will have on RE, particularly large multifamily.

I actually initially sent her the required adverse action notice.

Incidentally, your rate of return will actually decrease as you pay down more.Aggressively paying down debt is a strategy that many debt adverse BP members follow, although, more members value the benefits of leverage.  

Generally, there is a clause in the lease that states that the tenant is not in bankruptcy nor in any adverse financial condition.

Because I couldn't buy the property, I filed for Adverse Possession.  

Christine,I have not reviewed the SBA 504 Authorization in detail recently but I am sure there is some sort of equivalent to a "material adverse change" in the either the SBA's document or your conventional lender's note.