We recently had massive flooding in our area due to an ancient infrastructure combined with massive rain.

Dee Peterson I don't mean to rain on your parade, but the guy has bad credit meaning he, more than likely, can't handle his own finances so what makes you think he can handle a business partnership?

The situations is the lawn has grown incredibly wild with all the Spring rains we've been having, and I want to make sure it is still being maintained during the sale process in case the contract falls through, as well as a general courtesy to the new owners. 

Below grade housing can be done well if you provide attractive access (Conveniently placed snow and rain protected stairwells) and good natural light for the floor below grade.  

On the judgement side of things, at one time before the Dodd Frank rules, people would go open a HELOC on said property that would wipe out all the equity, they would not draw on it, but it would still be shown as a debt owed to the bank.

Original mortgage was $125,000 and the judgement amount was $120k-ish.http://www.remax.com/realestatehomesforsale/5626-old-route-ste-22-shartlesville-pa-19554-gid400037463090.html

Some landlords like this because they get to negotiate the terms and when the tenant fails the get immediate eviction and get a judgement for any monetary items negotiated originally.

I don't often go against my judgement but I bet it works out.  

Chance, yeah, when it rains, it pours.When everything runs too smoothly for too long....start to get nervous!

Check tax assessor records, learn to look up liens, judgements, etc.