We hear about new horror stories regular on BP and it is about time someone turns the shoe on these jokers.

It is typical, but my guess is that they want to be sure you have no "undesirable" criminal offenses; selling drugs, murder and the like, and also to be sure that you can afford the regular HOA fees.  

Good deals are going within 1 day and even regular homes that are upgraded decently are on the market for less than 2 weeks. 

These conditions can be observed by regular visits.If there is concern, talk to plumbers, contractors, etc. to let you know what they see when they visit. 

About 80% of the transactions I'm involved with are regular listings.  

Many don't -- and most multi-family projects in most states require an architect's / engineers stamp -- so architects are getting regularly involved.It should also be understood that when working with an architect, developers typically pay the architect for very specific, very partial services on a sort of a la carte basis only.   

For section 8 housing, I've found references that a living room can be used as 'sleeping area' and qualify for occupancy requirements/limits.

Since this is a 1 bedroom and the leak is over the bed, what do I need to do for a place for them to sleep?

And I could probably get them to open up the property.The only other thing I thought about before going to sleep is that I wonder why Citi did not pursue a deed in lieu of foreclosure.

I would find a cheaper way to get equity that would not cause you to lose sleep three months down the road.