Lenders aren’t dumb—they know that as long as the sponsor has any hope of keeping the property they (lender) can squeeze the borrower for money by granting a maturity extension in exchange for a principal paydown.But the moment the lender thinks they can recover their principal, or that they can’t squeeze any more money from the borrower for additional principal reductions, the cooperative spirit will end and the lender will force a sale.  

But the borrower wouldn't cooperate, things dragged out, and the AG started making vague threats.

Hey Sara, with 3 of 4 tenant non-paying you've definitely got your work cut out for you.I don't know what work is being done right now but in my experience non-paying tenants aren't exactly cooperate when contractors.My suggestion would be to get rid of the non-payers ASAP.

So yes, I'd say the first step is to informally talk with the tenants face to face and get a sense of who will be cooperative and who could be difficult, and let that inform your strategy for each of them going forward.

Even when the fact pattern rises to gross negligence most plaintiff's attorneys will frame their complaint as negligence omitting certain facts to improve the chances of insurance cooperation.

I messaged the tenant that I am going to complain to her case worker and to the housing authority if she doesn't cooperate.

@Saijal Sindwani what are you going to do when your S8 tenant doesn't cooperate and you can't talk them into anything?

Is the tenant otherwise cooperative and taking care of the place and paying rent timely? 

The neighbor is not cooperative.

[RESIDENT’S LAST NAME], for your diligent cooperation during this transition period.