Borrower contacts the lender to request a loan modification. 

This would give you the info you need to either talk to the HOA about the situation (since it was a modification to the property that was done after the tenant moved in) or for her to hire a mover to do the work because she either cant or won't.  

Knowing what direction the community is going is vital if you plan on holding property.

An attorney attempted to arrange a loan modification, and advised my mother to stop paying the mortgage payments.One thing I did understand correctly was the gentrifying trend of the neighborhood, and the house has since appreciated in value to around 890K(adjusted comps analysis).  

They might be able to just get an appraisal on the updated property and do a loan modification which might be cheaper.3) You might not like this option as it could cost more, but look at refinancing all three properties with conventional financing.

No missing vital information in the private section of the mls about how to make an offer. 

I had some ups and downs were I had to do loan modifications, the worst of all I had to file for Chapter 13 to keep my Home from previous Ch 7 filed.

But pls note, they usually look for more bedrooms so that can make some profit and you may need to do some house modifications to align with their interests as well as to make it ALF compliant. 

Will they be taking into consideration any modifications to the property since the original report?

(Last comment here- Florida is a hardest hit state- many of the funds from TARP that were not used for modification are now made available for down payment assistance in some instances.