From what I understand, it seems I will need to verify how the transfer was done in 2007 (quit claim (bad?)

The reason I mention the 'high income' in particular is simply because right now, I seem to be a pretty solid bet for most lenders whereas I'm not sure if my net-worth in stock will be sufficient to get a good mortgage rate since my 'income-to-debt' ratio will be dramatically different.I don't intend to try taking on a bad deal in the short-term just because of the whole mortgage-lendability-risk issue, but I'm trying to figure out how much of an issue it really even is in the first place and how much I should take it into consideration.If I don't have an active income, presumably (and please, correct me if I'm wrong here) I'd still have some potential to get mortgages, but they'd be at a higher rate (e.g. maybe a couple percentage points higher)?

My credit was bad and now all of a sudden owed a bunch of money. 

People need a place to live, even when the economy is bad.

Not a bad jump into investing option with the intent of a refi a short time later.

Sometimes development can actually be a bad thing. 

IMHO, treating your investors right and keeping your promises is the best way to avoid problems with an investor but it's a good feeling to know we're well covered in case things go bad.

If doing so prior to "re-fi" would open up better financing options it seems to be the best choice as we plan to rinse and repeat of coarse.The 1.2 Debt service ratio is the same as DCR ?

Personally, it sounds like it was just bad timing on their part so I wouldn't sweat them being late once. 

Other than the comps telling you bad news, are there any other particular red flags you look for specifically?