It sounds like you have an un-permitted unit, which is essentially always a risk since there has been no notice to the AHJ that it exists and they can therefore initiate a code case to have it removed in most cases.

Hi, pre foreclosure in all of its permutations, before the bank sends Notice of Default (NOD) or efter which is state even county dependant but often starts a 4 week clock till the trustee auction are the 2nd most difficult deal scenario and IMHO only experienced investors should bother, the 1st most difficult deal scenario are bidding at the court house steps on lord only knows what is being auctioned off sometimes even 2nd mortgages, you need to do so much home work to attempt to reduce your risk at the court house steps...Pre foreclosure no one talks about these issues, always about the nice sounding stuff like "motivated seller" get a good deal etc etc both are usually not the case.- 95% of folks in pre or post NOD want to stay in their house, keep their house inspite of them 100% will loose the house at the auction. 

I notice that you comment on almost all Roofstock related posts usually to defend Roofstock.

I recommend that you look at Notice of Defaults, Vacants, Tax Liens or Probate. 

Just give them a non renewal notice.

Most mortgage companies will not call loan due if payments are current but you do run that risk and need to be prepared to payoff or refi at a moments notice.

Do you not notice how the vast majority of the nation is NOT with you on your karen-campaign? 

If something is off, you'll be able to notice it BEFORE you ever order the products!

I did notice the purchase contract states the purchase was subject to inspection and appraisal.

One issue that I'm noticing is the range of reported insurance costs.