Ideally the tenant would have renters insurance to cover incidents like this where they are responsible, and really, a good case in point to adding that requirement to the lease.

If I inform the tenant within the 30 or 60 day after they move out, that I will be keeping the SD as a penalty, do you think it can be done and I'd win the case in court if I ever get sued? 

However, unless he is doing it for you, you have to hire an Attorney to substitute yourself into the foreclosure case in a timely fashion before ratification.

Case in point, I've been getting a bunch of properties well under market where the owners are taking 20-40% haircuts off of what they paid years ago.

That way you have a stronger case in court if you have to evict. 

@Roy Oliphant  I know its totally counter intuitive.. but most of my best deals have been when I insist that sellers retain an attorney to represent them in the transaction.. this on its face at least in our states takes any issue with unconscionable profit off the table. .. and of course a lot of what I do is development land and we can double or triple properties values in as short as 120 to 360 days with an approved plat or knowing where zoning is going to change as was the case in this one were we made a big hit.. and it could go the other way .. recession no one wants to buy dirt and we lose our ***

If that's the case in your location, there may still be outstanding inspections that would need to be completed.

There are definitely benefits to being there (at least I find that to be the case in may area where we have Sheriff Sales).

Case in point - show me one real estate book that has the 14% rule.

This is especially the case in the urban core which is where everyone moving here wants to be.