Can the landlord also collect attorney fees from the defaulting tenant?

The borrower defaulted and was a few months behind.

While that goes on, I still have to fix the damage and get it back on market but sadly now that its 9 months into the project I have spent all of my money and am in default. 

Include the finish selections as well so they understand what is being installed (Carpet is cheaper than hardwood and if you install hardwood herringbone thats even more expensive).Then you have the general terms as part of the contract which are insurance requiremens, licensing, schedule, indemnifications, lien waivers, case of default. 

FYI, 13 motions for default have just been filed by two previous customers of BTC, totaling around $ 420k.  

Will they institute the default rate over a technicality such as missing the completion date by a few months  or will they ignore the default rate because they see the reason for the delay wasn't entirely borrower's fault and borrower  has a plan of action to get the project on track?

If they want to severely overpay, cool, but as others have said, the risk of default in this case is probably high 98th percentile. 

Take a look at this chart: FICO Score Pct of Population Default Probability 800 or more 13.00% 1.00% 750-799 27.00% 1.00% 700-749 18.00% 4.40% 650-699 15.00% 8.90% 600-649 12.00% 15.80% 550-599 8.00% 22.50% 500-549 5.00% 28.40% Less than 499 2.00% 41.00% This is how likely a borrower is likely to default on credit extended to them.

If you buy it too low, in some jurisdictions they will call it "equity skimming" which is illegal.It can be very profitable, I've done many, but you really need to know what you are doing. on pre foreclosures on the West coast if you happen to do them legally .. the old owner is due 80% of the profit if you sell within 36 months.. so there is that.. but if your buying pre foreclosure for long term hold and wait out the 36 months then your fine. the reality these days is post GFC lenders/ banks/ servicers have realize that working with the buyer to reinstate recast redo the loans is far better than taking it all the way to foreclosure so your correct its usually the worse houses that make it all the way to the end and go to sale.thats why if you follow NODs  Notice of defaults or whatever they are call in your state. you see so many postponements and or removed or paid off etc.. so you hone in on one property do all this work only to have it not go  to sale  rarely are you going to buy a home that you really want LOL

Where are we seeing the greater sense of defaults (specific state, county).