I am waiitng for the criminal history come back.   

Once I announced that I would require an application fee and run credit/criminal background checks, the calls dropped to a few a week.

It is a very gray area that seems mostly illegal but is very very rarely prosecuted.

It isn't prosecuted against often so there is low risk as the wholesaler but if an issue arises, the listing agent could report what your agent was attempting to do and they could be in trouble with the state board.This is why most wholesalers write their own contracts, do their own marketing, and work with off market leads.WORD OF ADVICE: No many investors are going to buy a property from a wholesaler that is on the open market.

She must submit to both credit and criminal reports, so you have all the details to make a decision.

you are only allowed to credit bid what your owed and expenses.. if you paid the tax's then yes you can add them if they are unpaid then no U cant.. if you want to own the property and continue to bid above your credit bid your just like any other investor and you can bring your cash to the sale ( cashiers check) and bid as high as you want.. but keep in mind any overage over what your credit bid is.. goes to the next creditor or to the owner. and if you don't pay the first off your taking title sub too the first and will need to deal with it.. in many cases like this is can be a situation were you simply buy out the first NOW.. and your second goes into first position and your second because you advanced the 30k becomes 105k credit bid.. and then anything bid above goes to the owner or next in line.your trustee that you hire to prosecute the foreclosure will walk you through all this.. 

That said, there is a clause in your HAP agreement that says if there is any criminal activity attached to the house you have the right to terminate the lease.  

We all joke that criminals are dumb...

Banks are required to report any transaction $10k+ for routine terrorist / criminal activity checks.Sounds like a pain, going in and paying like in 1952, but shouldn't matter.

Are you in charge of background checks- do you credit and criminal, other states> do you verify, etc.What happens in a hurricane when they can't go in the house for 2 weeks?