The new mtg then goes into default and the lender seeks to foreclosure it. 

I would not seek to go 50/50 on the first deal. 

I would sit down with your CPA and seek to fully understand the tax ramifications of your untimely death.

That is typically a good starting point.Before you start your search, it is important to know what you are seeking. 

Only certain things qualify for these treatments and it's things that aren't considered by the IRS to be part of the actual property essentially. 

Then in cases like this going forward all you'll need to do is tell them you're sorry for their luck, fix the issue then encourage them to seek reimbursement from their insurance provider.

I posted a similar thread topic not long ago about seeking desktop appraisals.  

Hi Jonathan, I may be able to provide assistance with what you are seeking.

You might want to see where the water lines are coming from in your unit, make sure that you have sealed around that as well.In my condo association, they determine who is at fault for the treatment of the building by bringing in a third party inspector (pest control) and whoever the pest control determines to have the worst/biggest infestation of (thing) is generally at fault.

I was outraged to see some of the quotes I heard back to do a termite/carpenter ant treatment just on the exterior of a house.