@Therese V.That's a new version of MIRR (Modified Internal Rate of Return) to me.IRR (Internal Rate of Return) assumes that all cashflows are reinvested in the business at the rate-of-return.MIRR assumes all positive cash flows are reinvested at the business' cost of capital and all initial outlays are financed at the business' financing costs.  

This is not a rule that the bank can change or modify. 

But after that we decided that our offers would we would only submit our cash offers on deals where we were either going to use our cash or we had an arrangement w/ a private lender that did not require us to modify the contract to financing.  

Are there a few lessons learned I could modify my strategy with? 

So, all the normal options of selling the property, getting a tenant, negotiating lower payments, restructuring  the note, modifying the note, etc. are no longer available to the seller/borrower should the note be called due. 

We haven’t modified rent and the tenants were placed using a state program to make them financially responsible, which has worked out minus the claims of home invasion. 

Can you modify your plans to avoid the full removal? 

HUD is also exempt from any state required disclosuresYou cannot modify a HUD contract in any way so no clauses can be added and/or removedAs an investor, you will lose your earnest money if you fail to close on the property. 

A bank can file a lien once under a future advance loan arrangement and they disburse funds in increments for construction or rehab projects, when completed the note is modified to a long term mortgage or the construction loan can be refinanced without going through the loan process all over again, the new loan simply pays of the old one and you move in.

If you accept, the entity that you are requesting information from has 30 days to comply and fulfill your request from the date all monies are paid and you have answered any/all questions they have about your request.If they deny your request, you are more than welcome to submit a modified request.