But again sometimes if it gets so bad like 08 to 2010 some folks simply had no choice they did not have the means to cure and BK was the only option or walking away..

That's a can of worms you don't want to open.You should deliver a Notice to Cure or Quit today, for the extra people staying in the house.

Once cured, you can spread thinset directly to onto that and lay down tile.

The only practical option you would have to protect your investment if there is a default would be to foreclose yourself (which you would need to advance funds for) and advance the funds to cure the defaults on the senior liens, deal with their ongoing debt service, property taxes, picking up the completion of the project, etc.I don't think you would be able to advance your personal funds to do this without getting into prohibited transaction issues with your IRA.

lots of words.Say you have a $100K FMV, loan is good fixed rate, balance is $90K fixed, 3 months behind, no good solution to cure the note (make up back payments.You come in and they agree you take over payments and make up back 3 mo. 

If you don't cure this in some manner you WILL get 100's of letters during the foreclosure process.you will get phone calls.. and its the law that you must sit down with a foreclosure mediator as well to talk over your issue..

Austin,1) Get a few more quotes (in writing, and guaranteed price, if you can).2) Run your numbers... what happens if it's 10K (20% of rehab budget) to cure, do the numbers still work?

@Mindy Jensen  A winter in Leadville cured me of the rockies  LOL

,To play devils advocate I am pretty sure you can find somewhere on the internet that for FREE will advise pouring Apple Cider Vinegar on their eyes to cure some ailment.

This tenant would be violating my lease on two fronts:- Tenants are not allowed on the roof at any time- Trampolines and other devices/activities that can cause my insurance premium to increase or cancellation of policy are prohibited(I'm paraphrasing the lease language)So, if they were living under one of my roofs, I would send them a 10-day Notice to Cure for both issues.