Or they might just start tearing down houses to avoid vacant houses or eye sores. 

There must be another reason, and it may be the lenders attempts to get around the tax laws.The treatment of the property would not impact the ability, or lack of ability to foreclose in the event of a default.

By assigning the option you can still sell it down the road without having to hold it for a year to get capital gains vs income tax treatment.

Competent financial literacy is sorely lacking with many in the lower and middle classes.  

Get three treatment estimates from reputable companies in the area and include those as well.  

Also can you give me an idea of Lead treatment as well, how is it done? 

Occupant profile: two older ladies on SS, one with mental disability and another with cancer undergoing radiation treatment.

Question the CEO on their policies and treatment of institutions vs investors.  

I don't think it will be a deal killer but the sellers will have to pay for treatment.

I have a background in wastewater treatment, I also have some experience in multi level business.