He said the cost of the Phase 2 assessment is $6K and the buyer would need to pay the entire amount. 

There are a fair amount of people spending a decent amount of money monthly, to market for properties in Chatt. 

Like Josiah already mentioned you would lose a considerable amount of money if you keep the rent below market value. 

Possibly even do a cash for keys scenario where you give them a dollar amount to move and take the personal property and trash with them and leave the property in broom swept condition. 

Does it make sense financailly to reinstate and keep the property with the current amount owed vs what it is currently worth?

I might be slightly off with the dollar amounts, since it goes up every year and I joined a few years ago, but it's in that ballpark. 

Run it as a rental property and make the numbers work and if you like how the deal looks then offer the amount you feel will work.

Points amount is less than 1%. 

Regarding your Refinance loan amount.  

The market is saturated with flippers who have driven many poor home owners out of neighborhoods and decades old family homes once they can no longer afford the taxes.Families can't even get in to see a house the day it is listed because there are already multiple cash offers and the banks take them and don't give the families a fair chance.Trying to buy a home for my family in Monroe County, and the price we can afford, but newly listed homes that may need the smallest amount of work … NO chance for us.