I saw the income potential in a college town and ability to add value.

To your questions though, my clients have not experienced the dramatic loss of negotiating ability that you have illustrated.

There was a legal notice taped to the front door and I have reached out to the attorney listed to confirm that Core Capital REO has the ability to assign listing agreements on behalf of the bank. 

The true test of a company is how they interact & stay engaged to resolve those issues, which we always try to do to the best of our ability! 

I know plenty of investors who will happily pay one of the many firms out there who help place equity so they can focus on their core competency which is running their real estate business (me being one of who would gladly pay a fee so for access to equity and the ability to focus on what I do best as a developer).

At the same time, many of these “investor friendly” lenders operate like robots without the ability to adapt to the situations that arise in construction lending which makes the construction administration process far more difficult than necessary.

Another benefit is the ability to dispose of a component like the old roof when a new roof is installed. 

You need multiple exit strategies because the condo association can restrict or outright eliminate your ability to rent out a condo regardless of whether its an LTR, MTR, or STR.

If it is vacant, and you feel that your agent is representing you to the best of their ability, then it is price.

If they confident in their ability to perform, they won't balk at this.