@Chris Seveney is correct, security deposit claims only arise if the funds are not returned.

Told me the violation wasn't corrected in the 30 days required timeframe (yes you are correct, the repairs were done in time but they didn't come out to confirm). 

If I understand what you're saying correctly, no, it doesn't have any balloon payments.

You’re on the right path!

@Curt Smith @Jay Hinrichs are both correct.

STR is a slowly dying model that exploded in the last 10 years and correcting big time.

Unless you negotiate a new contract or addendum with your PMC, they do NOT have to abide by any requests/demands you make that contradict what's written in the management contract.If they have in fact NOT followed the terms of their contract, then you'll want to send them something in writing pointing out the specific language in their contract that they violated and ask what they plan to do about it.If they fail to correct or address the issues, then you'll want to start looking for a new PMC.

Quote from @John Friendas: Quote from @Chris Seveney: When buying at auction you will have zero ability to sue (and win) an auction site if information is not correct.  

You are absolutely correct - I have never done this exercise. 

You are correct there certainly are ways for things to be done badly or illegally, but these are BAD MESSY situations before a sub-to deal would even be considered.