Every underwriter has their own required form.Not executing it (or striking out items, etc.) raises big red flags and does nothing to prevent the seller from being sued... by the buyer or the title company.

A good attorney will do their best to prevent future problematic scenarios.  

Something prevented him from pursuing the prior owners

Everyone else on your team will be transaction-based and not really involved after a purchase.We're in the Metro Detroit area, so you may want to follow our blog here on BP, but at least read the following posts:Follow our "Deep Dive" series we're doing about Metro Detroit cities and City of Detroit Neighborhoods: https://www.biggerpockets.com/...How to “Screen a PMC Better than a Tenant”: https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processesIn our experience you will need to:1) Learn to "Maintain to the Neighborhood", not your personal standards2) Tenant-Proof everything you can Hard surface flooring, not carpeting (too easy to trash) Same basic paint for everything No garbage disposals for them to break Only spring-type doorstops also with plate on the wall Glue rubber mats under sinks to prevent water damage Sheet aluminum on walls around stovetops, for easy grease removal Towel racks - screw 1x3 to wall studs, then screw rack to that Install low-profile downspout ext, not aluminum that always disappear Plan on cleaning gutters and leaves up in the fall as tenants won't Avoid garage door openers3) Have a great application screening process: Check credit for evictions & convictions, utility collections Focus on employment/income stability Require bank or debit card statement - you'll be surprised what they spend their money on!

Also, when planning on doing preventive maintenance/check ups it is best to call before it gets hot.

What are they trying to prevent?

Nobody really wants to see a wave of foreclosures and this is another way of preventing that, in my opinion.

I would find some literature to share with them on how to prevent this in the future and then put them on notice that the next problem is theirs to pay for.

At a high level, you have a handful of options:- Exterior drain tile, which is many times cost prohibitive if you are in a dense area as it involves digging a trench around the entire foundation of the property then installing crushed gravel, perforated PVC pipe covered with fabric to prevent other debris from entering. 

(When a borrower files their first BK, there is an automatic stay preventing creditors from trying to collect; if it's a second filing within 1 year of the last one getting dismissed, the automatic stay only lasts for 30 days.)Our attorney filed a brilliant opposition laying out the borrower's 6 bankruptcy filings within 10 years, which showed a pattern of bad faith filings.