The other the borrower was seriously underwater but they are in their 70's and of course do not want to move so we did a loan mod through the BK court which has done well.

Also, throughout the foreclosure process the owner has filed several court answer documents stating that they are still attempting to find a resolution, but their options are running out (e.g. cashing out IRA).  

When I told her I was concerned about how minimal those lease agreements were and told her I'd started working on building some I found online she scoffed and immediately tossed them aside saying "they aren't even legal" and she'd "like to see someone who has had to use one in court... " I'm not sure what could possibly make them "not legal".

She needs to move on with her life and not tie up the already overburdened court system with meaningless issues like this. 

The courts cap the total amount you can get from your tenant at 1500 bucks.

In fact, googling around a little, I find this: "In a number of past cases where a mentally ill tenant violated their lease, evictions were blocked by the court until the tenant could gain access to support services or medical care to help him or her to comply with the lease in the future."

Is it the same as a regular house deed where you go to an attorney and you sign and the buyer signs and then the deed is recorded at the court house?

@Ben GammonSearch the local clerk of courts website for her criminal record, check for theft offenses etc before you let her have access to your stuff!

Courts are doing this, and not just an isolated few!

Courts are doing this, and not just an isolated few!