Just a word of caution--I'm not sure what the rules are about tenant denial where you are located(maybe there aren't any beyond the usual Fair Housing requirements where you are), but here in Portland, OR, there is an expanded list of conditions that protect tenants from denial as part of the rent control program here (for example, you cannot deny someone solely based on them using Section 8 vouchers if they can meet all other criteria).

This is a major issue where I invest because the City has been hitting hard on trying to get these converted back to single family homes, so there is an ordinance that after a year of vacancy a property loses its nonconforming use and you have to reapply with the Zoning Board, who usually denies your request.

My problem is that if they choose to deny the home inspection again (which I think they will), are there any coarse of action I can take against the seller legally?

They will deny it and you'll have to fight it, so ask for more then you want so they think they're winning when they give you less

You allowed it, insurance denies coverage or fights full coverage on liability.

From what I see that gets alot of people..people who use hard money, when they check reserves which ties into carrying costs mainly. alot get denied. great find man.

I acquired some business credit cards but have been denied left and right for home renovation and personal loans.Unit is old (think pink & blue bathroom and 8x7 kitchen with floral countertops).

It's possible that your lender could deny you your mortgage because your credit criteria has changed. 

We haven't posted those requirements but that's how we've operated internally.Now we want to deny this applicant (or discourage them from applying) even though the guarantor would meet the minimum income requirements.

And now the bank denied her loan so the dealership want her to return the truck she purchased.What happen was the bank that approve her for finance did a phone question interview for fraud reasons I guess with her last Friday and she didn't fully remember her zipcode for her previous employer and previous residence and they wont give her a 2nd interview.