To apply to real property in the same fashion might lead up to the above issues in short order. 

All liens come along for the ride.

I would just ride it out.

We pay appraisal fees and recording fees in the same blind fashion. 

We love hosting and cooking for people and taking travelers on local hikes and mountain bike rides, etc.

If she/he sells the property they can avoid foreclosure and avoid the credit hit (and maybe turn a profit), but what if they try to (or have to) ride it out, and the home is foreclosed on them: 1.

From that time forward, I prepare a file in the same fashion prior to presenting it to a lender.

As they are in violation of their lease, various city ordinances, building codes, etc I intend to shortly ride over there and slap a 7 day vacate notice on the front door. 

Look for transitional areas to buy in and ride the equity train.

As an example: I would lend out $50,000 and within 1 month begin to receive passive income ($500/month @ 12%; $625/month @ 15%), with the option to get my money back within one year, at which point I could either: 1) cash out, 2) continue to just "let it ride", or 3) add to/subtract from the principle amount to change the monthly cashflow I'd be receiving at the same rate of return/interest (or negotiate a change in interest rate after the first year).Obviously, I'd need to know that that the borrower is strong; both in terms of their current finances/ability to pay the interest and then the principle back; as well as their business operations/prospects to sustainably keep things going for the foreseeable future.