Do you hesitate to lease if the potential tenant has Chapter 7 bankruptcy in their credit report or "housing court" in their background? 

There are also some risk with this strategy especially if the defaulter files bankruptcy which could complicate issues.

I just stubbled upon mysmartmove, it charges the applicant $25 to $40 for an extensive screening which includes; credit score, criminal background, eviction history, and bankruptcy.

Filed bankruptcy in the last 7 years?

Consider:-1) Searching for recent bankruptcy/eviction/pre-foreclosure filings with your county.

Over a million people laid off by company bankruptcy or closure in mortgage and vendors. 

The advantage here is in cases of bankruptcy, in CA from $100K to $175K is protected from creditors, depending on your status.

today I got a letter from bankruptcy court with a stay for the eviction.

With supply and demand 101, we know that is not good, especially with the Saudis not lowering their oil production.From what I've read, I expect a lot of the outfits that are fracking in Canada and the Northern states to probably file bankruptcy and be sold out, or do tremendous amounts of volume to stay afloat, worsening conditions.

Heard nothing back from the homeowner (henceforward known as HO :-)Then...the news that HO had declared bankruptcy.Foreclosure halted.Then the news that the bankruptcy was not going to proceed.Foreclosure on again.Finally, the HO decided to sell, before the auction date hit.