I have language in the lease that says repairs required due to tenant misuse or negligence are the responsibility of the tenant.

Resulting damages are tenants' responsibility if misused.

They also misuse some terms with what seems to be the intention of annoying accountants to no end (i.e. using the term "rent income" for gross rents, for example). 

Pics reflect some redmodeling work with equipment in the images, some flooring done, other remodeling in early-mid stages.Some thoughts are, lack of planning/structure for project --> misused funds they had, investor pivoted to another project, local market potential plummeted.

On the other side, Amateur Buyers (a term that Bloomberg obviously misused) were the real financial winners:  "local flippers sold homes for 20% above their purchase price.

Sewer backups are often caused by tenant misuse, but not always.

I suppose you could just buy it from the borrower and he gets to pay the note off from the lender with the proceeds of the sale but that doesn't sound like what you are trying to do.At the end of the day, there are a lot of missing pieces to your scenario and/or a lot of misuse of the terms used in this industry.

If, for example, they decide not to pay their portion of the rent to you; if they get arrested for criminal activity; if they move in someone not authorized by you OR by Sec 8; damage your property through misuse or abuse, and are unable or unwilling to pay for the repair; and if you raise the issue with their caseworker, odds are they may just terminate the tenant from the program.

Pay for, replace, or repair in a landlord-approved manner, all items (including doors, windows, locks, smoke/CO alarms) damaged or made inoperable during occupancy; correct or repair plumbing and fixtures clogged or broken by misuse or neglect.

The home was a new construction and still within the builder's warranty, but the builder denied warranty saying it was misuse (garden hose should not be attached to outdoor faucet in winter).