It can cause headaches you wouldnt have to endure with a sfr/multi.

It is a tedious, time-consuming, ugly, and expensive masonry job that is usually done on scaffolding in inclement local weather.What you should do is prime and paint and caulk the exterior wood trim on your windows with Kilz indoor/outdoor oil primer (used to be sold as Kilz Complete) and an exterior gloss oil paint (like Rust-oleum Professional) and the most expensive and longest-lasting caulk you can buy, and then you make it an item on your quarterly inspections to look at the trim.

You selected this lender who had no or little 203k experience and now you have to endure the consequences of that decision. 

Downside of these - batteries die, and not always reliable in very inclement weather.

This is something I wish no one has to endure...

If this happens what financial penalties would I endure if any?

Then realize being an agent is not what they thought it was.If you dont have the patience or endurance to build the great wall of china brick by brick don't bother spending the money to get licensed.

I think that depending on the aggressiveness of the pitch, like it or not, many people will attend a real estate meeting even when they know they must endure the inevitable sales presentation.

With a tired landlord it comes down to their financial abilities to get out of a property and how much hit they are willing to take.You thought the value was X and a new comp showed Y.Now that your seller sees a lower value he will just hold the property.I see this all the time.Some can hold for the market to return and others cannot.Some sellers might bring 30k to closing to get out of it or if it is 50k just hold onto it.It's a relation of how much loss will I payout versus the headache I will endure for keeping the property.

I really hope new people are not afraid to ask questions after reading the burning at the stake that I endured as a result of my question.Your response is not necessary.