This destroys the credit of the original owner who can then sue the subto buyer.Another issue is if the subto seller claims they were taken advantage of by the subto buyer at a vulnerable time (pre-foreclosure) and an attorney or regulator raises the question of equity skimming.

If the place burns down (which it very well could because K&T is a big fire hazard), and the insurance company finds out you didn't disclose there was active K&T, they will certainly deny the claim.

I heard but don't know the veracity of this claim, However FLA suffers from a lot of fraudulent claims there by also causing rates to be higher.. 

Claims" are an insurance matter.

Do you think anyone can get this back in small claims court?

I also remember a time when we could claim a dependent on our tax returns even if the dependent didn't have a SSN. 

I don't remember the precise words, but essentially he claimed that there was some sort of standard rental agreement applicable to the area and he could not (perhaps in reality would not) add anything to it at all, which struck me as oddly questionable.

The other groups I'm in are always reporting the difficulties of getting claims paid for.    

They all claim their properties are exempted but haha...

HUD targets average rents for an area, so just like average school grades, this typically translates to Class C property rents.In our Metro Detroit market, the MAJORITY of the claims about getting higher than market rents can be traced to a Class D Neighborhood/Property.