If you have older, deteriorating waste lines (cast iron or galvanized) where the inner surface is no longer smooth you will have issues.  

the area is deteriorating obviously ,look at zillow houses there sold for 2000 and 5000 $ I think this is waste of money with no exit strategy

I explain the them that it provides a written record which protects them and me if the relationship was to deteriorate.  

Because we have not been able to close I will have to move all my belongings into storage over the next 2 weeeks and find a new apartment to live in until HUD can close on the house.As a taxpayer I am pissed that HUD would be willing to let this and other houses sit idle and deteriorate at taxpayer expense, despite having interested and capable buyers.

I didn't want the property, not only because it was low value but also city fines and liens were headed our way since the property was starting to deteriorate.

This is one of the ways a lender mitigates its risk.I've seen terms improve on a loan if an appraisal comes in high or if the payoff is lower than expected, but I've also see terms deteriorate if an appraisal comes in low or there are issues with credit, assets, etc.That doesn't make the lender a shark.

Some of his properties are rented and he pockets the rent while letting the property deteriorate and doesn't pay the taxes.

As the property's condition deteriorates, it's value plummets.

Doesn't seem like anyone is really in a hurry to move this thing, all the while it's deteriorating.

Take an honest look at yourself and think about what you did to contribute to the deterioration in the relationship, learn from it and move on.