can I find absentee owners and water cut off lists etc.. on PropStream?

It is fair to express your disappointment that they exceeded the cost target you gave them. 

Can anyone recommend good companies to root cause  and implement solution to fix this issue?

I’ve been in contact with the Better Business Bureau about them  cut your losses and go the other way. 

This will be costly in today's market and interest rates, but might be worth a shot if they can afford to stay.If they don't want to stay and you want the the townhome to rent to someone else and just want to assume the loan, well then she can call the lender and see if the loan is assumable. 

Would it be better to do some remodeling and deduct those costs from the sale proceeds, or should I foreclose and sell the property "as-is"?

It gets tricky because wind can be argued as the cause for almost anything, besides water.Is there a way to complete some preventative measures like cutting trees back around the property...? 

It's important to run your own comps and go out to the property with a contractor so that you can get an idea of true renovation costs. 

Located about 1/2 mile from the base of Sabino Canyon recreation area and Coronado National Forest, beautiful mountain views, cut-de-sac, very nice neighborhood.  

Some banks and lenders will cut you off at 6-7 even if your DTI is below the normal percentage.