For example, if a property has a judgement of $100,000, and it is only worth $60,000, the bank will buy it back; get paid possibly $60,000 in PMI, then list it as a REO for $60,000.

When it rains, it pours.  

@Alyssa Raines Let's do it. 

And some days you have rain on top of snow and then a blistering cold night leaving everything ice crusted and frozen solid... in remodeling you can get away without heavy equipment.

If the applicant doesn't have an eviction or judgement and the former landlord gives a positive reference I would take that as enough to know they paid.

I think one is better served by looking at the current economic climate in the world , region and city and then making your judgements.  

If you were posting to win a popularity contest then yes, I truly apologize for raining on your parade and I understand you are not too happy with my reply.Tell me JUST ONE thing.Tell me from the entire post I made.

The smaller issue was that it was a default judgement.

Got a judgement for close to $25k, have yet to collect ANYTHING, even after hiring an investigator and a law firm that "specializes" in collections. 

If it's your first rehab, it will certainly cost more than you plan, your electrical guy won't show, your plumber will have you way down on his list so the project will just sit for a while, your sheet rocker will have to wait until the rains stop because the mud won't dry, your inspection will fail and you'll have to redo that, your refrigerator space in the kitchen will be two inches short because the counter is bigger than you thought, then the door of the refrigerator will swing the wrong way and you will have to figure that one out too.