It's possible the tenant was negligent if they knew or should have known that the hose was not connected.

Your only recourse on the PM would be if you could prove they did something grossly negligent, like leaving the doors open. 

If you do not address it the insurance adjustor may simply deny the claim due to willful negligence. 

(really) the city was growing, and the rate of unemployment was negligible.  

When you're spending hundreds and hundreds of thousands of dollars on the construction of a project trying to cut $30k-$40k is arguably negligible. 

So it’s beginning to sound more like they may have all been working together.The SIGNED HUD by all parties we were provided didn’t have the prior lien holder on it, so there is certainly deception, fraud there for knowing but intentionally leaving it off the hud by the attorney for sure and not disclosing it, but otherwise no, I’ve not confirmed yet if this was all of them working together or just gross negligence on her end and then a situation between borrower and lender no one at the time knew of that just happened to be multiple issues that were later discovered because of one mistake of the closing attorney when the lender and borrower might have thought it legit was closing and no one would have known and then all would have been fine.and yes, TO THE PENNY, the amount they needed from me ended up to be the EXACT amount which was then wired to the lender to satisfy their lien, BEFORE FORECLOSURE BTW. 

Instead, leaving the 30-year note on there and paying the difference towards principal will cut down the term of your loan, and you aren't forced to pay those higher payments.  15 year notes aren't as incentivized as they used to be either so the rate benefit is negligible.  

Generally you would not have liability since there was no negligence on your part.

I can blame the Sponsor all I want, and believe me, he was negligent, incompetent, among other things.

Several of my investments have foreclosed or gone into default, and my earnings were negligible, but I have always gotten my money back.