They get into title on these things and simply dont have the means to carry a mortgage if they have a tenant squat on them and since as Don mentioned they are not personally liable or it does not affect their credit the original owner takes all that liability.. they are on the Note but NOT in title.. and Especially in a state like Texas that goes for deficiency judgements Or can go for them against their borrowers selling sub too in those instances takes on a huge risk factor. 

Every inspection I have ever seen has a deficiency on it....so if there are deficiencies....is that satisfactory?

No need to write a complete new lease unless it had some deficiencies?

On one property for example that I bought for $150,000, I only ended up putting 22k down with seller credits, that weren't even property deficiency related.

Most look at the current figures and don't take into account all the deferred maintenance which includes deficiencies. 

Do a walkthrough on day one with them and note any deficiencies and take video or pictures.

Now the set up looks like I'll wind up with a large deficiency judgement at some point, which is disappointing because my goal was to try and buy after a few years of renting.   

They point out possible deficiencies in the property (only the ones they can visually see!)

Conversely, if there's still a large inventory deficiency going into a market softening, our Utah housing market might just be a little slower, giving us all a long-needed break.

IF" the flood zone can be removed, that is certainly a value add opportunity for this specific property as it would remove a deficiency in the property.