This is a time sensitive matter - he could be out today.

The reason is more in keeping the property owner occupied, since maintenance and upkeep is generally taken care of by owners, safeguarding the property as opposed to a tenant who has little interest in the property.

It's amazing how clunky the banking system can be, when they supposedly have so many safeguards.

Additionally in my eyes it's quite hard to safeguard the drop box system from thieves.

I agree with you, this is an arguable damage at sensitive location. 

Now, after you do 20 deals with an HML guy, you might get him to do 100% if they trust and have confidence in the borrower and property.......and as long as they aren't losing money on idle funds.Point is, HML risks are much lower than conventional lending and the rate is not that risk sensitive. :)

I utilized Brian Eastman of Safeguard Advisors to assist me with the setup.

If they (they young couple, not the parents) come back with a very strong interest, I may entertain some of the safeguards mentioned above making the parents responsible (e.g., have both sets of parents screened and co-sign etc) rather than face a long term vacancy.

Guess I'm a little too sensitive.

I implemented special safeguards in my screening to eliminate any applicant I deem a risk.