Are there any rules, laws, or regulations regarding this?

Seems like a good idea in theory maybe not in practice. 

@Jonathan Greene @Jay Hinrichs @Nicholas L.Note: Each state has their own way of handling and regulating foreclosures, and as someone who is not specializing in foreclosures I can give you only general ideas and information. 

SFHs are largely exempt from many regulations such as rent control.

Bacon is more yummy than a Christmas tree, but I bet I'm going to have a whole lot less regulation growing Christmas trees... however, before we even get to that, it's necessary to know that the inquiry is even about bacon v Christmas trees, rather than Bacon v grapes. 

That doesn’t go unnoticed by regulators.

Figure out how to actually analyze property and practice.

It drives me crazy when I hear these stories preventive maintenance is what should be practiced and discussing all avenues of the deal and the borrowers docs in advance.   

Seacoast NH, for example, has some great potential with short-term rental markets (Airbnb, VRBO), especially in towns like Portsmouth or Hampton, but the regulations can be a bit tricky.

You didn't mention what kind of law you're practicing.