But I also see some modifications being made to an existing note that could be made without falling out of compliance.

The same goes with the code compliance.

I can assure you  posers and make believe is what you will see.

The second reason is that the HOA is in the 2nd year of a 4 year assessment to improve the community by fixing all the exteriors of all buildings, removing dead trees, repaving walkways and working toward resident compliance with HOA dues and more...

https://nationwidelicensingsystem.org/Pages/defaul...Secondly, most institutional lenders have staff of attorneys to keep them in compliance with the laws, so a regular real estate attorney doesn't know about lender compliance issues, or how to write documents that protect the lender, because most institutional lenders provide their own loan docs (supplied by their own attorneys)Third, non institutional lenders set their own rates dependent on the risk they are assuming in the deal. 

I've assured them that if there is a loss, they would be made whole and the loss would fall upon me.

This may add $200 a year to your insurance but I assure you after 25 years doing corporate housing never skip on the insurance. 

We are all driven this way.I suggest investigating this process and if you do, you will discover how to identify your HILP and I can assure you it will make a world of difference in what you do moving forward. 

The case manager talks to the tenant and so do we, within no time the tenant comes back into compliance with the rental agreement and this saves the tenancy.

However, when I borrow, I like to make my lenders feel comfortable and give them as much assurance as possible.