They only pay out on certain things, there's a deductible to pay for every claim, they may deny your claim, you have to wait on them to send a vendor, and they will send a cheap vendor and try to cut corners. 

I was trying to get one through Wells Fargo and after doing all he paperwork they called back and said Denied only because I had four investment properties.

When the information is otherwise, the program the borrower was being put into might change or the loan denied.

I have so many associates get denied basic tourist visa's and B1 or B2 visa's.

If they lied (or for that matter omitted something rather than filling in "N/A" if not applicable as instructed) on the application, their application would be denied in our business. 

Both blamed the other for using them and denied their own use...it was almost comical.

I would take your emotions out of it and explain that she has a choice; she either pays the late fee and all is good, or she doesn't pay it, assuming your lease is written this way, she will be considered behind on rent for the month, late charges will due for the next month, and so on, and at some point you will file an eviction for unpaid rent, and once eviction paperwork is filed with the county, other landlords will see that when they screen and most likely deny her rental application.

Keep in mind however that is an insurance company's job to deny claims, and that they are very good at doing so.

My only concern is that they denied to sign on the lease as a guarantor and said that they will give me Payment Commitment letter, not sure what exactly it means.also, I ran credit-background on applicants and their credit is not so good so just wanted to make sure I am not getting into any complications....in your case, did they sign as guarantor or how did you make sure that you will get paid on time??? 

Alan,you're not going to keep them,pure and simple.You're going to raise their rents significantly and deny them their desire to smoke in their homes so,they're going to leave.Tell them now exactly what they are facing in October and expect them to squawk like chickens.Then offer them an early out of there lease in 60 days or more and hope they take it without further griping so you can get some full paying tenants in those units.Clean them up nice,do your upgrades and repairs,and get ready for the search for new tenants.If your units are truly worth 750 a month,go get it boy!!!!