It could impact debt financing adversely, but you can limit the percentage of units or buildings in your portfolio to minimize impacts.

Poor decision making on behalf of the sponsor.I suppose that cause #1 could arguably be related to cause #2, because some might argue that the sponsor, as the market expert, should have seen the potential for adverse market conditions and either avoided them or planned for them. 

More stringent measures can help to contain the problem within this category of loans, without there being too many adverse effects on the broader mortgage market.

Problem is, banks don't want anyone on title that's not also on the loan.Most money partners have liquid cash available and/or aren't so debt-adverse.  

If you're turning them down based on their credit history, then you should provide them an "adverse action" letter, for your own protection.

In most areas your Board of Realtors has developed their contracts over time, mush has to do with the experiences and court cases in that jurisdiction.Those "consumer" covenants contained in a contract did not come out of thin air based on some bleeding heart Real Estate Broker, they came from findings in law, state court findings, attitudes and customs.RE Brokers are very risk adverse, they don't want any stone left unturned where that snake may be that can bite them.

There might be a adverse possession/quiet title angle if the 7/8s owner has possession and pays the taxes for the required number of years.My experience is that making offers to owners of partial interests, which I've done several times, makes the players make-up and agree to sell.  

Wanting to connect with someone in the DFW area that has actually has SUCCESS with Adverse Possession.

Rental income is not UBTI and 401(k)s are, generally, exempt from UDFI on real estate acquisition indebtedness.You must, however, be aware of the prohibited transaction rules that provide for adverse tax consequences for transacting with disqualified persons.

These under-the-radar provisions have never been publicly vetted and will have unintended and adverse impacts on you and countless other Americans who wish to save for a secure retirement through Main Street investments.