Quote from @Cortney Roberts: Give notification to Cure or Quit, a deadline of 72 hours, and set an inspection appointment for verification of compliance.

The seller has a second mortgage of 53k (HELOC) that has been charged off.So the total payoff to me to cure would be 64k and I'd need another 6 in rehab costs to put me at 70k into the deal and the property would be worth 310 at that point.

This action should get them to pay their rent immediately to cure the default and then do not discuss anything further.

@Vincent PlantThere are many things you could do but there's no magic cure.

You can cure code deficiencies but zoning is another thing. 

REO = negotiable between Buyer and Seller often Buyer demands Seller to cure.2.  

Typically residential inspectors won't give a cost to cure - it's not what they're paid for and I've found they're uncomfortable even giving a ballpark estimate.

So they can look to me for a cure, however the time I held the title was only for a few minutes and my defense is that they indicated clear title, so I would suspect the title company would just jump over my title period and look for the party that caused the problem.

You should have served a notice to cure when she did not sign the lease as required and definatly the day after she was first late with rent.

@Sean Buruschkin I would send the Landlord a 30 day notice to cure.