If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower."

It also means that the mortgage is still intact and the property is unlikely to have much equity.Remember, banks got TARP money, made profits up the yen-yang (ironically with lots of Chinese money) and these properties are just a pain to remediate on a large scale basis. 

Fire damage remediation can be expensive.I'd work with the known appraisal of $230k as Zillow admits to not being very accurate.

And do I have any remedy if he does it again?

They gave me 60 days to remedy it and will make you go to court if you don't at least call them for an extensionI would suggest you get everything rent ready..

The agent said a remediation company could do a chemical wash on the walls, and repaint because the results were not too high.  

If they do they're paying to remediate any damage plus painting the placePets:  Depends, I'd rather not but I do. 

If the Purchaser defaults at closing, the Deposit will be retained by the Vendor as it’s sole remedy.6.

I know it is annoying, but paint is about the easiest thing to remedy when prepping a unit for the next tenant.

If the Purchaser defaults at closing, the Deposit will be retained by the Vendor as it’s sole remedy.6.