They got fundamentally sound real estate, with matching debt (10+ yr fixed rate) and budgets with the intent to hold nearly forever. 

I have absolutely no intention of signing this document though know they will have some recourse to enforce the easement if need be.

I haven't heard any who recommend a primary business model of buying notes with the chief intent of foreclosing versus getting the owner re-performing considering the cost and time required for foreclosure proceedings as well as all the unknowns that come  along with it.

The tenants have been aware of the landlord's intent to sell for at least 3 months now.

Purchase price: $595,000 Cash invested: $125,000 Purchased with the intent to lease to the tenant.

I don't think buying a property with the intention of writing of negative cash flow is a sound investment. 

Looks intentional but can't prove it. 

It's in the main area of the home, and the intention is to keep it as a long-term rental, so I agree that addressing the issue might be the best course of action. 

In the meantime I will continue the search for a new PMC and talk to our lawyer with the intent of filing a suit since odds are it will be needed. 

They arent really allowed to turn you away, but they will push you away with terrible loan pricing and intentionally bad service.