There's a big difference between breaking the law and violating a contract (one is a criminal matter, the other is a civil matter).

I thought I had helped the community by buying the houses criminals were using for their illicit business.

Also, crime websites show hardly any criminal activity there, so seems pretty safe.

Criminal penalties are not outside the realm of possibility depending on how egregious the conduct was. 

If she has no evictions or criminal history that is great.

Basically after we mutually agreed that she would leave after two weeks we discovered her criminal background through a reverse phone lookup.

Be careful contacting delinquent borrowers in states where your actions could be construed as foreclosure consulting, which may require a license and may subject you to civil/criminal penalties if you run afoul of the law.

The criminal investigator is in communication with the victims who filed. 

Truly appreciated.Mike You should check if he has a prior record or criminal history.

The state is like, here is a list of people most likely to be motivated to sell and would welcome your help... but if you use it you are a criminal!