If he can then you can do all other steps above to cure the first mortgage and try to sell the property. 

If you do not know, you need to find out.Send your tenant a Cure or Quit notice in accordance with your state's landlord tenant laws. 

Regarding the water you ask her once to do the transfer to her name and after that you give official notice to cure or quit, same applies to all lease violations. 

They have no intention of paying the mortgage, no interest in curing or saving the house, no interest in listing and selling on the MLS- they just want to be done with the bank's harassment and the entire situation. 

Many tenants do not take landlords seriously until they receive a letter from an attorney.A letter from an attorney letting them know that landlords are not responsible for curing defects that tenants intentionally caused and that (a) you break early and pay these fees or (b) we don't let you out of your lease.That said, I think you should make sure you have a lawyer write it.  

But hoarding is more like a disease and unless you have a cure for it you better not expect much from this approach. 

I believe the term is "time to cure".

you would have to cure the default with cash. 

Both issues are easily cured by finding another agent.

There are ways to minimize the effects of this, but I have never seen nore heard of the problem being completely cured.