Account Closed is right you the material has to be removed by an certified remediation company.

I am still attempting to get them to present the concern and remedy request to the bank.Your thoughts?

Any thoughts on remedying?

In, HRS Section 521-70 Landlord's remedies for absence, misuse, abandonment and failure to honor tenancy before occupancy(c) Unless otherwise provided in the rental agreement, use of the dwelling unit by the tenant for any other purpose than as the tenant's abode, or nonuse of the dwelling unit, constitutes a breach of the tenant's obligations under section 521-52 and entitles the landlord to proceed as provided in section 521-72.Here is section 521-72:HRS Section 521-72 Landlord's remedies for improper use.

I guess its easy to say aside from locating then negotiating a purchase price against the home there was no due diligence other than inspecting and reviewing cost to remedy.  

For example, one of my dwellings became uninhabitable due to water damage leading to mold with the required remediation attached to that.

If you have a large patch of mold then you would need to use a licensed mold remediation company.

are there no remedy clauses in your current contract for things like this?

I looked at  your states landlord tenant laws and repairs / remedies.. in my view it is clearly in the landlords best interest to have the tenant vacate.

If they told him they will no longer pursue him and continue to uphold that agreement, the lender has no remedy that I can think of to recover the collateral.