The process of moving the property from the ownership of the owner to the state's possession (not necessarily 'ownership') is called Escheatment.

The security deposit is deposited into our security deposit trust account and remains there in its entirety until a future point in time when we regain possession of our unit. 

But one day of post-closing possession... and your 75-120.3(d) "shield" is out the window.

When the Mortgagee takes possession of the deed, they are now the formal owner and they can rent the property or sell the property or do what ever they deem fit.

Has your pm reached out to the tenant to see what it would take for them to return possession of the property and just leave?

RESIDENT UNDERSTANDS THAT IF POSSESSION IS NOT TAKEN ON THE DATE SPECIFIED IN THE LEASE AGREEMENT THAT THE Holding Fee  WILL BE RETAINED BY MANAGEMENT AND WILL THEREFORE BECOME NON-REFUNDABLE, IN ADDITION, THE LEASE WILL BECOME NULL AND VOID AT MANAGEMENTS OPTION. 

That encroachment is an issue because it can result in an adverse possession claim. 

Shortly after taking possession of the building, I increased the rents.

Always verify the utilities are out of your name before giving possession of the property - I have made this mistake before too.If they will not immediately pay you for the utilities and get settled up, I would strongly consider beginning an eviction.

An investor looking to create transactions below market value (known as wholesale) will have to use his knowledge, his cunning, his negotiating skills, personality and alternative financing techniques (also know as creative financing) to make the deal work.To FLIP properties for a profit could also be known as making a short term profit by controlling real estate below market value (wholesale).Some tips:Make offers often subject to assignment and public auction (sold as is all cash)Using "bank days" (gives you more time to find an assignee)Build in an automatic extension (so that you do not have to ask for it when you need it)Always ask for Contract Candy in your offer (seller incentives; all the furniture, cash back etc)Use hybrid offers (limited partnership with the seller)Get right of possession (so you can show the property, clean it up a little, prep for auction sale)Multiply your offers (have agents make offers on your behalf on expired listings, no need to look at them, offer 25% below the expired listed price, subject to inspection.