I reviewed it and made some modifications to it and emailed it back to the attorney.

If they are three months behind but making payments, they should apply for a loan modification or otherwise work with the bank.

In other words, the modification or reinstatement gives the borrower until that maturity date (30 years from now?)

It is possible for a building to be in contravention of the zoning under the current municipal plan, but to have been in compliance under zoning at the time of construction/modification to its present configuration {allowing it to persist unless the building is altered again in some significant manner} - this is the rational behind requesting the Vendor obtain a zoning confirmation letter.

It's relatively easy to get a borrower in default who wants to keep their home to agree to a workout they really can't afford over the long term.I have done quite a few workouts which usually include a loan modification, and I am very careful to ensure that the borrower can afford the modification terms I am proposing. 

This is primarily a legal question, the answer to which depends on a number of facts and factors including the local law of the state you are operating in, the exact terminology of your lease agreement, and oral modifications you may have otherwise made.

@John Santero do you have standard "bulletproof" modifications you make on all of your C/D section 8 rentals?

Hey Kyle Yes,  I have successfully purchased through this company and all went well however......their contact is slanted completely in their favor and did not allow for any contact modifications,  so understand you will be getting things as is under their terms. 

So came down to two options: loan modification or stay with current situation and loose it when the bank had enough. 

Nothing else will change the terms unless the lender agrees to a loan modification.