REI is a river, always moving, adjusting, twisting and turning.

I need some gentle guidence as a start in what direction to go to find out foreclosure costs.My JV partner and I own a note and the borrower has defaulted and not paid in several months.

However, beyond giving this group an opportunity to do the right thing (I responded with appreciation for the transparency, the only 2 questions we're allowed to legally ask, and a gentle reminder that we are a dog-friendly property and it's a minimal cost of $20 per night), is there a better way to handle this?

There's an interesting twist here from what I read,  the "lender" becomes the new gp/servicer that's operating this apartment.

I believe the idea is to put your own twist to a concept.  

And then keep doing my building and maybe still continue to do land flipping albeit with a bit of a twist - i.e.

Regarding the concern your brought up;The ORIGINAL Borrowers impound escrow funds from their Lender that are to be deposited into the Attorney in Fact - corporate account, in theory should be OK BECAUSE;# 1 - They ALSO have a written agreement with the ORIGINAL Borrower on the loanthat they have relinquish any interest they they may have in those impound funds AND # 2  - Did give and Grant a SPECIFIC POA - power of attorney rights to their ENTITY to act on their behalf in matters dealing with the PROPERTY and and the LOAN or any assignee of the Loan.NOW here is a TWIST and POSSIBLE FUTURE COMPLICATION that COULD exist when someone has taken over an existing loan SUBJECT TO that loan and ALSO has a POA and other such agreements.

Gently let them know that if they continue to use the HVAC in this manner and it causes the unit to fail, they will be responsible for replacing it due to negligence. 

It is fine to take a gentle approach when talking to them, but those provisions are in your lease for a reason.

Bringing the $750 Tenant to the Real WorldAs for your tenant enjoying their $750-a-month sweet deal, it's time for a gentle reality check.