Always ask for subordinated financing from sellerThink about a performance mortgage from the seller - payment is subject to the successful performance  of the stated income disclosureAsh for "Can Adds" what can the seller add to sweeten the deal - money back at settlement - grantees to survive settlement, allowances for new appliances, right of possession and management before settlementSeller held PRINCIPAL MORTGAGE (one with no interest -self reducing)Assumption of existing or proposed financing without qualification and release of liabilitySeller to contribute $ for needed repairs to be put in escrow. 

Once back in HUDs possession, it is assigned to an asset manager who secures the home, changes the locks and give a BPO.

If no contact is made you have the legal right to retake possession.

I had one estate where the children decided not to probate the property of their father because he has cancer, their father owed several hundred thousand dollars to Doctors and hospitals, his estate was only worth about 70K$, so they just took the personal possessions they wanted and walked away.

Therefore, you cannot take late fees from it.However, if you complete the eviction process through the court system and the court awards you possession and the monies owed (which they almost always do), at THAT time you may use the security deposit money toward anything owed to you before refunding anything left back to the tenant.

The steps you'll need to take depend on whether the tenant files for bankruptcy before or after you get a judgment against the tenant awarding you possession of the rental.Tenant Files for Bankruptcy After You've Won PossessionIf you sued the tenant for eviction and won a judgment for possession before the tenant filed for bankruptcy, you can proceed to evict the tenant, even if the tenant then files for bankruptcy in an attempt to stop the eviction.New bankruptcy law vs. prior law.

First thing we did was to ensure the seller still had possession and right to sell, which was confirmed by their bank.

- Yes, as long as you haven't taken possession of the proceeds.

I am sure the previous owners put quite a bit work on it, and it possessed its uniqueness.

At that point you can take possession without an eviction.