I'm not an attorney but if I were in that situation I'd shoot for a refinance grace period in order to protect my credit.How a lender proceeds just depends on the individual lender's policy but I'd try my best to preserve my future financing ability.

If the property is zoned R2, which it may be if a developer wants to build a duplex, then you could add a second rental unit sooner or later, and you may be able to do it as an additional unit in the large yard and preserve the original structure.

We have entered wars and started numerous other wars to preserve that status.  

They did add some rules (things like square footage bonuses, etc)  for preserving the existing house when adding additional units, and they loosened or removed parking requirements.   

On my last BRRRR I was able to preserve capital up front by only putting in 10% down and they included the rehab in the loan! 

However, there still is much foreign (Chinese amongst it) capital coming to real estate as a means of capital preservation - predominately in Vancouver and the GTA, but we are seeing it in the Maritimes (five local apartment buildings purchased in the last year at prices that do not make sense as an investment).

@Devon Daniels, if you notify the bank right now, and let them know you've made preservation improvements and the value of those improvements, they will probably postpone the foreclosure and redeem right away.

Banks sometimes can have the 2nd file the foreclosure, and preserve the first lien.   

I am a HUGE passive income guy so I invest heavily in Blue chips paying nice dividends, as well as REITS, MLPS, and undervalued mature companies that will throw off a nice dividend.My goal is to preserve my capital and live off of my dividend income as well as my Real Estate income.

The true purpose of the ordinance won't be realized until those property owners who avoid or refuse compliance are challenged to comply.At the end of the day, having Lead Safe properties improves and preserves the health of our community's children.