Capital preservation is arguable more important when you have eight-figures sitting in the bank (piggybacking on the @Jay Hinrichs comment).  3.)

The doc was likely created for secured lenders who were under-collateralized and wished to preserve other rights.

You can do fix up as long as you can prove that it is to "maintain, preserve and safekeep" the property.  

Such as, “Find addresses for all the little old blue-hair ladies in Arkansas.”2.Perform the task yourself, preserving each step, each link, each phone number (although, I have yet to ask VA’s to use phones.)

Any plan, idea or path that does not take a preservation approach to investing in this asset class is wrong.

Or is true that PRESERVANT just basically loses their investment because it was worthless, and you gain the title and the HOA lien is now null because PRESERVANT had purchased  it before the primary mortgage auction. 

I think as long as you are working with a licensed servicer you can contact & direct third party services directly like attorneys, property preservation companies, etc.

If you choose capital preservation as the definition of a safe investment, then I say MF is safe, in general. 

However, typically the lender on the first mortgage takes action during the HOA's foreclosure to preserve their lien position.

The property received historic preservation tax credits and property tax abatement for conversion.