I thought I bring this issue about Peter Harris back up .I was also told about the $10k start up fee .

First off, pardon me if I misunderstand things given the limited amount of information I have, but there are 2 things right off the bat just from your description that could be contributing to your issue: 1) a 2nd floor unit - I had a similar setup for a duplex I owned in St.

I would think their loan documents give them the right to control the property after the original owner dies - regardless of who is living there (although I have no direct knowledge of the laws where you live).There are details we don't know here... like if you want the house for sentimental reasons, or because you see the value between what it's worth on the market today and what the reverse mortgage company wants for it?  

The issues I'm seeing have to do with how the new leases were worded regarding the security deposit and who signed the leases.

I was wondering if anyone has these same issues in their market, and how they've been able to skirt the mania and actually find real serious deals.

You still have to comply with all relevant laws.  

There's a good chance the issue(s) you face has already been discussed and answered.Ask questions in the appropriate forum.

Surprisingly there are not a ton of units available, saturation is not a huge issue in those specific areas. 

The servicers have to send notices 15 days prior to the transfer, but the new servicer is required by law to honor any payments made to the old servicer for 60 days.

Like @Michael Baum said check on the laws first.