I also get tired of having to explain that by "making a relationship" with you, I expose myself to litigation if I ever have to sue a borrower for a deficiency from a foreclosure and oh, let's not even mention the part about how I have to explain to my state and federal regulators, or my shareholders that I failed in my duties to maximize recovery and minimize risk of loss by selling directly to some invidivual investor instead of exposing the property to the open market....you keep digging.

Verbatim from Mortgage Agreement...The mortgagee may declare the full amount of the debt to be owed and payable immediately for any defaultthe following defaults are:-The agreement states that if mortgagor fails and defaults to make Payment required by Bond or Note or mortgage within 15 days of due dateFailure to keep Any of the promises and agreements (which their was non of the above, he doesn’t even answer our calls) within a reasonable time stated.So now, with this type of situation.

But if you're living in the house, according to whatever mortgage regulations govern your loan, fixing it up, and then moving on and taking a profit, I fail to see how this is manipulation.

in Newark even if you fail the CC  inspection, you can close with a conditional CC.

What other issues can I expect when a septic fails or the foundation needs repair?

Unless @Keith Jourdan is hiding something from us, this is a clear-cut case and an estoppel certificate would have likely saved his bacon.You are assuming those payments were rent.Perhaps I fail to see the value in getting an occupant to confirm he is not paying rent.

If I am the owner and enter into a contract for deed on a residential property then what is to stop  the buyer from having work done on a property and then fail to pay the workers ?

You are basically trying to finance a deal that is destined to fail.

The inspection failed first time because of a vent that wasn’t covered, a couple of non-grounded outlets, and some chipped paint.

Looking to flip (or possibly BRRRR) a property in the Chicagoland suburbs, but it has failed many things on its municipal inspection (really no surprise - it's a highly distressed property).