Always prepare for the worst.

But I am not trying to sell the note, I will continue to hold it, and in the worst-case scenario, the borrower will become current, or in the best-case scenario I will foreclose and gain equity.

What's the worst case scenario? 

A PMC can get a bad reputation really fast and be forced to use only the WORST contractors that are unreliable hacks. 

The worst we ever did was like $40k on a $350k house and that was a low point for us ... 

If you think there was fraud, you may have a case, but you will need to spend money to pursue it, and at the end of the day, it very likely won't yield any results, other than less money in your bank account, and worst case, you could be countersued, as some sponsors have threatened.

I work in law enforcement so I already think about all the "what ifs" and worst case scenarios!!!...

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.PM us if you’d like to discuss this logical approach in greater detail!

The worst experience we've had was with a flat roofer (very common roof type in Chicago) we finally wrapped up, after waiting almost two years for them to finish/fix something. 

Just trying to prepare for the worst.