They won't sell at market (ARV or FMV) in their existing condition - pricing needs to reflect the property's condition.

Additionally the design reflects the sun directly in to the Nassur Museum literally cooking the paintings and art work, Law suits abound...

If the owner of record Quitclaims the deed to another party, does the note need to be modified as well to reflect the new deed holder?  

These numbers reflect today's construction market in Seattle where labor shortages are crazy and regulation is borderline socialististic.

With HUD their attitude is that they will simply sell it to someone else who might be a bigger sucker, or someone who will put in a bid reflecting all of these inspection issues.

But, on a property I am considering putting an offer on, I would significantly rehab it (to take advantage of a higher ARV and to BRRRR it once the rehab is complete), so I lowered my expenses to reflect that I should have lesser capex/maintenance with the property.  

The $113 amount is not currently reflected on credit report, but I can get letter from FedLoan Servicing, as it wont appear on credit report until after 5/1/18 payment.

You are seeing that now in April, so that is already old news, and the market already reflected that article.Below is an example of real estate cycle.

Furthermore, the smaller the market the more the data is stale (and hence, not reflective of reality).

So the rents you receive today may actually reflect property prices 5 or 7 years ago.