WeWork has filed for bankruptcy protection (Chapter 11) a few days ago.

The guarantor is on the hook for the absconded money.The same thing could happen with funds that were intended to be used to renovate the property.If the borrower committed fraud in applying for the loan, the entire loan can turn recourse.If the borrower declares bankruptcy, the entire loan can turn recourse.Certainly each loan is different and carve-outs vary, but just because it's a non-recourse loan doesn't mean that a guarantor gets to collect a fee and rest easy knowing that they aren't on the hook for anything.

There's actually been inconsistencies in showing up to discuss the lease and there's a chapter 7 bankruptcy recently filed.

., and " called"or "accelerated" his loans (meaning all the principal and interest became due immediately) and he was forced to declare bankruptcy.   

The last piece was eye opening, I’d prefer to not do bankruptcy again.

Change attorney, change attorney, file for bankruptcy, and then the judge still gives them 2 weeks to get out after all that.What kills you is that every single person in the court room knows the tenant is just using the system for delays and just accepts it. 

Before I even send her an application, from a simple search, I see she has 2 prior bankruptcies and is currently in another bankruptcy.

I do care about payment history for the last 24 months, eviction history, bankruptcies, monies owed to utility companies and of course landlord references. 

But Detroit was doing so bad (2013 bankruptcy) that it's had some tremendous appreciation.

However, what happens if the owner declares bankruptcy and the IRS decides to take the house?