He has absolutely no income and I am now responsible for this year's taxes and water Bill's.

We went down to Iowa and found the house full of mold because of a water leak.  

Is there public water , gas, sewer  at the street?

(maybe $5k a year)  Water/other utilities - ?

This house needs very little with the roof being good, new water heater, high eff. furnace, a/c, appliances are all less than 7 years old and according to the owner, just needs paint and flooring in the bedrooms because the carpet is worn out.

why are you paying for water and sewer on a single family home? 

Just explain the situation I recently purchased a property last summer all cash but could not get the deed untill dye test was complete 40$ water company came out and turned the water on.

My take, these are rather uncharted waters we are in now, and the FED is not exactly sure which way to turn.

One thought is that I relook at their income (because that is what is mainly going to be affected) and meanwhile look at all the new applicants in the same pool and see who may be a better fit now that there are more applicants in the mix and base my new selection on the best fit applicant.The remaining two are aware that I have been showing the place and screening through new applicants at this time.  

Especially in the winter months, when the pool of potential clients is low and the vacancy tends to last longer than you want, it is very tempting to take the first person who "looks good".