The procedural issue they are now arguing should have been raised before the sale was ratified, IMO. 

Follow the laws and especially the notice procedures, or you'll find in court that you did it all for nothing.

You can also improve your screening process to prevent more bad tenants from getting in and then tighten up your procedures so the bad ones don't get enough time to really cause damage.

Leveraging your money (20% down but controlling 100% of the asset) will get you there much faster and the risk is pretty low if you follow some basic rules (know how to calculate cash flow, buy smart, maintain a reserve, have strong policies and procedures in place for renters, know your laws, etc.)

Keller Williams has provided a wonderful support team, procedures, and helpful tools like Appfolio to get started.

In the year that I've worked here, I've learned so much about the processes, procedures and software that make a good PM company run smoothly.

Also, since he moved out 2 years ago he stopped paying and now the house is in Foreclosure procedures.

and subs should have no problem proving they have insurance and will add you to their policy this is standard Operating procedures. 

In my 10+ years of architecture I've seen a lot of great ideas get shot down by the county review boards and thats after the owner has tried do do things with out going through the typical channels and typical procedures.

Jason,You have (90) days to occupy unless there is an "extenuating circustance" and renters unfortunatley fall under that reason so (Good & Bad) you would just have to show the proper procedures (court request to vacate) if the lender requests reason or letter of explanation.