Also they check for eviction and money judgements and verify the address the applicant provides.

I didn't feel that I had enough information to determine if something was a good deal or not.Thinking back before I finally pulled the trigger on my first deal ... it started to become 'paralysis by over-analysis' ... at some pt, you have to trust the numbers (i.e. your judgement)!

I don't know if these count as worst real estate deals but here goes- Bought a rental property in 2002, had the tenants stay one night and sue me for 15k they eventually won smalls claims for $3600, hit my credit as a judgement and 2 yrs later they came to my job put a garnishment on my wages.

A tenant can sue for sure as anyone can but what they sue for would be offset by rent owed so they don't get anything out of it.These types of laws vary by state.Cop said you could get power turned off and they might leave but then they also might light candles and pull trim off of the walls to burn for heat.I have seen in eviction hearings before when a tenant has said that the place is not suitable to live in.The judge asked them why they didn't leave and they said because the rent price is so cheap.The judge then said you ask the landlord in writing to make the repairs.If they do not make the repairs then you leave or pay to have the repairs done and keep the receipts so they can be deducted off of the rent owed.The judge said he has never seen a tenant pay for repairs in his history on the bench.Then the judge simply issues judgement in favor of the landlord.Hypothetically speaking the tenants need to leave or fix the place on their own cost.Doesn't make sense as a landlord to fix a bunch of crap for non-paying tenants you would are evicting anyways.They will just cause more damage to the unit.Better to get them out and then fix everything.

Problem is, if seller is in the same boat like I am - subprime problem and maybe loses her house, I still may not get the judgement from the case.

Even though I have never been in a personal situation that I have had to live in the types of properties that I own, there are tons of people in lower income levels that need to rent.Get over the pre-judgement that no one would want to live in such a property.

If they get nothing because they are wiped out in a foreclosure they still have the ability to pursue a deficiency judgement against you in an effort to collect.

I got a judgement for the past due rent and started a garnishment.

I spent so much of time and money fixing it up that it might cloud my judgement. 

I'm pretty excited about this now but I don't want to let this cloud my judgement regarding a purchase.