Another major risk is the borrower declaring bankruptcy.  

A near bankruptcy left me with difficulties raising credit and I worry about closing on a rehab and not having the capital to complete the project. 

Keep in mind, a Business can file for a bankruptcy in a heartbeat, and leave you hanging.

Because seller financing is “junior” to bank financing, meaning in the case of bankruptcy the bank will get paid out first, they understandably want to know what they can do to maximize the chance they get paid in full.

They had to declare their income on the scholarship paperwork. 

Quick History:I'm looking at the title records, and I can surmise the owner went into bankruptcy and lost the house in 2015. 

Afaik, if you're declaring "gifts", that means: you've genuinely been told by the givers - it's yours, forever! 

All that just to say I have experience with Auction.com and they seem to be a pretty reputable business...at least here in AZ.I DO know that on all of their contracts, within the "fine print", there is a reinstatement clause which covers their butt in the event that the owner has somehow reinstated their loan with the lender, or filed bankruptcy to halt the sale, or SOMETHING to legally halt the sale. 

We filed bankruptcy b/c of a business failure, I got a job as a software engineer, and we're just now back to a bit or normalcy. 

Hi Anthony,Get a Licensed FL Broker on your team, learn creative financing, I have trained REIs that are broke and have had really bad credit, like a bankruptcy.