It is our legal obligation to make sure all policies and procedures are followed by our clients and tenants. 

I will hit upon a few things that weren’t touched upon already in the processes in the main body of the book, so here are a few nuggets for you now.The following observations are done after you have already performed the formal screening procedures.

You may be able to sue the borrower, but with what else you wrote, this doesn't seem likely to get you any money.I'd strongly recommend discussing the situation with a lawyer in your area who's familiar with foreclosure procedures (regarding whether or not to try to foreclose, and what might happen if someone else does.)

Some attorneys mess up when they need to name the United States of America as a defendant (requires the attorney to be aware of very specific procedural rules that overrule PA procedural rules).

You'll need to check with all three to see what the rules/procedures are for the area.

In other words, on a Federal level, a borrower can request a loan modification any time up until about 30 days from sale (If it's within 30 days, there is no requirement for the lender to consider them for a loan mod, unless they do so as a typical process/procedure).

This was never mentioned during the preliminary procedures.

@Christian Hutchinson You need to talk to only Texas investors/attorneys who know the procedures there.  

You'll, of course, have to check about property notification procedures.

You can contact the relevant permit office directly to inquire about their procedures for retroactive permits.