This form is sent to the borrower, investor, and the summary form is sent to the IRS.Other fee for services may include door knocking, bankruptcy research and filing of proofs of claim, providing credit reports, workouts with borrowers, loan modifications, short sales, REO (Real Estate Owned) management, inspection services, foreclosure management, etc.SERVICER OF RECORD OPTIONA servicing company may also offer you the opportunity to do your own workouts with the borrower while using their license as “insurance” (this is what we meant by “insurance reasons”).

The house was rehabbed with good quality materials and overall looks great but should I be worried with unpermitted modifications?

Assessing both macro and microeconomics is vital.

You'll want to ensure that the lease clearly outlines the terms and responsibilities, including occupancy limits and any necessary modifications to the property.

The loan currently has a modification, and at this point they’re interested in simply returning the home to the lender.

I do agree that having a clear timeline and budget is vital and am actively doing my due diligence with researching that subject.

You will need to make some modifications, such as property management and branding entities.

Be very careful with modifications or adding provisions.Most of what you are looking to accomplish is done with what I would call tenant training.

This might be the wrong forum so I request that it be moved by a mod if it's not the right one. 

You upgrading the property, thus increasing the value which in turn could push out the current tenants, contributes to the vitality of that free market, a market that gives the tenants alternative options.