Thanks again Bill.I wasn't feeling I need a carrot ... was just trying to understand how you were articulating the handling of late fees an/or a stepped interest rate.I'm not so much skittish over motivating the borrower as I am undecided if this is the best use of capital ... so I guess it is me, I am trying to motivate ... which is a strong indicator.I do not believe our interest rates are going to move much in three years, so I would set it at 9 - 10% (the BoC 5yr rate +3.5 - 4.5%) and leave it there; the more I think about annual adjustments, the less I think it is worth the effort.The threshold for criminal usury in Canada is 60% {all fees and charges are counted as interest on the original principal}.

Already in Seattle you cant denied based on the criminal background, and you can't evict in the winter because apparently all the snowflakes dancing on capitol hill get cold at 40 degrees ABOVE zero. 

Just heard that per HUD that people with a criminal record may be protected under Fair Housing Act. http://www.npr.org/2016/04/04/472929180/feds-denying

Are there any good service sites available online or companies to use that I can have potential tenants submit an application to, that will check credit, criminal history, eviction history, etc?

What they are doing is transfering criminal penalty risk exposure to YOU.

or worse yet, you may have allowed a criminal to scope out your progress, so they know what goodies are available to steal.

After a few sleepless nights I got an email from the sellers stating they would not prosecute if I tore up the contract.

Funds in your account from more than 90 days, three months statements can be sufficient to show funds available for a purchase.If both of you are to occupy the residence you can rely on your credit for the most part, unless the other party is barred from a loan due to bankruptcy or in some cases a criminal record, but if it's just poor credit they may go on title but not the note, this is with them in residence.State laws as to homestead exemptions, being in title may be a concern trying to do it commercially or with non-owner occupants on title or on the loan.It would really be best just to visit your lender, you might consider FHA.

Those agreement lawsuits are civil matters not criminal, contrary to popular belief.

The platform is integrated with Smartmove, so you get all your credit, criminal and eviction reports directly from TransUnion.