That would be far cheaper than not being able to perform and ending up in a lawsuit. 

The option is in effect only as long as the lease is performing.  

In order to reduce unforeseen repair costs, do you recommend the investor perform cosmetic and light repairs on the property.? 

You can find the FHA guidelines online, which are actually fairly extensive.  

When I do modifications, I usually like to set up a tax escrow as part of it, but the additional servicing cost and the borrowers past performance in paying taxes without escrow has to be considered. 

It's been a topic mentioned extensively on the forums, podcast, blog, and in our webinars. 

I made contact, (I thought) with the correct person handling their non-performing assets.  

In order to reduce unforeseen repair costs, do you recommend the investor perform cosmetic and light repairs on the property.? 

I training lease option assignments I ask unlicensed folks that aren't licensed to go knock on doors and say that if the agent with the listing agent doesn't perform to think of them, the Rei operator, that's itProcuring cause is an issue, so getting a release from the broker of the agent is important 

We unloaded an under-performing rental property in the summer of 2014 to one of these hedge funds.