Thank you for all of your opinions. I would like to mention however that even though a lot of you are busting my chops about me not wanting to update my home or be safe, that that is not the case at all. This has absolutely nothing to do with myself not wanting to update my homes. I am an excellent landlord and I take care of and update my properties continuously. I do not have any properties that are unsafe in any way. I operate my businesses in a professional way, documenting, and setting standards and rules.
Some of you may have missed that I have only heard of this happening twice. So this tells me that this is not a consistent practice performed when purchasing a home within my city. If there are city laws or ordinances or whatever, they should be carried out consistently, to everyone, not just a few people here and there. That is my point.
I have purchased 8 or so foreclosed homes so far and I have not been confronted with this yet. I have asked my realtor about this and nobody seems to have the answer yet. The original question was: "What the circumstances may be in which the city can force themselves into your home like this?"
I will just continue to find these answers within my own community. Thanks again for all your input.