He advised that he has had two (2) mortgages be denied (one refi, one purchase) at the last minute after the bank ran the final soft credit pull and saw the loans were in forbearance, just days before closing.He stated that his bank and most others are NOT allowing loans to be funded if the borrower has current loans in forbearance.  

(Can anyone confirm or deny?) 

Assuming no major abuse, they will live for quite a while with pumping probably once every year or two at the cost of about $300 each.

I attempted to obtain a personal renovation loan shortly after closing on my first property, but was denied on each attempt because the house was just placed on record.

I denied the request and it went away.Can you imagine advertising a 3bed/2bath house and then giving a refund because the guest thought it was a 6bed/4bath?

. : )It's abused often to mean anything from replacing a light fixture, to carpet and paint, to a full blown reno where everything is replaced.This is important especially on a 100 year old building.

It used to only take 1 neighbor objection to deny the STR license, now it takes 4.

Given the pace that banks tend to operate at in REO sales I would be surprised if they denied your request to postpone closing.  

Well, some states (like OH and FL, but not NC) have seen massive abuses in the real estate mortgage default space a decade ago and changed laws 6-8 years ago to attempt to curtail people who were financially unable or unwilling to close on "contracts" to purchase. 

I find most tenants (class B) do not abuse them and treat them fine.