who pays when we dont pay our credit card bills or the dr.?  

We had about $20k in cash, a $25k personal bank loan at 6.25% and planned to put anything additional on 0% interest for 12 months credit cards that we would pay back with the rental income after construction was completed.

That will give you an opportunity to raise your offer if you want. 

I talked to them over the week end and the most they would tell me is they are a Delaware company, didn't share their corporate name, but they certainly wanted a lot of information from me, such as bank statements, copy of social security card, and a lot of other stuff that I just don't feel comfortable in giving out to anyone that I don't have any kind of relationship with.

One thing to note, as an "absentee" owner such as myself, I call up AHS after the appointment has been made but before the servicing takes place, and I pay upfront a $100 "service fee" with credit card.

It includes a role playing transaction between Will and I that we tried off the cuff about 5 years ago and bombed big time....LOLOther than that, you can now have live chat on the Principals of RE, investor transactions and Notes for only $29.94 simply by sending me your debit/credit card number for the Biggerpockets Chat Education Class

If you don't have tons of income this could make other transactions in your life more difficult, buying a new car, credit cards, etc.

I had been raising the rent each year by 5% and never had a problem with them.

Absolutely not, they would say sorry and maybe send you a card but you would still be obligated to hold up your end of the contract.What do you do when they can't pay at all?

Though you didn't record the note to secure the property with a mortgage, you can still make it difficult for him to operate and potentially raise more money when new investors check him out and see his history.Don't take it lying down (so to speak). hopefully more people will chime in.