You, as a Mortgagee, do not have a right to simply run out and grab and insurance policy and place it on the property without giving proper notice to the Borrower and giving the Borrower the proper amount of time to cure the defect which in most cases is about 30 days.  

This will show them you are serious as well as use up their one chance to cure in a 12 month period for the state of MA.

When lease violations first begin, it's best to communicate effectively with the tenant and try to guide them back on track and if necessary serve a notice to "cure or quit" (or the equivalent for your jurisdiction). 

That's fantastic Deb .... sometimes taking action cures all nervousness/ anxiety ... and best of all, it now gives you confidence and a foundation to build upon!

Anyway, replacing just that one run of pipe cured it completely.

I suggest before you start to study your state laws concerning curing liens or mortgages through any sale of the colateralized property or encumberance.

I just need ideas on how to organize the process from violation, notice, time to cure etc.

We have a saying in my office....Price cures all. 

My thought was that I could offer him a deal that would take the whole thing off his hands in exchange for a discount on his note, and then I'd own the risk and reward calculus of either getting the owners to cure their default on the note, or complete the foreclosure that was already in progress and repossess the assett. 

Where the appraiser fee is now a zero tolerance fee, as in one that cannot increase, this creates a tolerance issue that has to be cured and many times the difference can be rather large.