Let me ask you this...Would you take financial advice from someone who is bankrupt?

It is normal for a bank/lender to pass 3rd party costs such as title, appraisal and any environmental or structural engineer inspections onto the borrower as these would be fees you would be responsible for paying at closing. a lender would quickly go bankrupt if they covered the cost of these items with every lost deal. 

No one ever asked or advised me on this and it almost made me bankrupt.

The idea that if you are concerned about being forced to house unwanted people and concerned about the hit to your business, that apparently means you have no cash reserves and haven't planned for problems at all and will go bankrupt immediately based on your poor planning.  

Why did they go bankrupt and what was there credit like before the event?

The fact's are the USA is bankrupt.

I was flipping for 2 years, successful, profiting ever deal, before people finally stopped telling me I was going to go bankrupt and loose my shirt.

also i've mentioned in that Ashcroft thread, that some of the bridge-loan lenders have intentionally created conditions where they approve the loan so they can bankrupt the GP/LP syndication for cheaper assets to acquire.

A big chunk of the housing shortage goes back to the Crash of '07 / '08 when, according to the economists of the day, 80% of builders and developers went bankrupt once the supply of new mortgage lending dried up.A good solution - though not the only one, certainly - would be to get home building back on track.

This bankrupts more individuals in the US than any other factor.2.