But, my concern is what is the " statutory or legal duty of the servicer" and can I put the loan pay off back where it was prior to the modification without paying for a fraudulent loan.

I use the other guy's credit and money to buy houses.

If you can not pay for them without tenants then you could end up losing them and your credit.

Idea...Have mom list her home, sell it, put the proceeds in the bank in a joint account with you on account.The wait a few months, then purchase another property as an Investment Property with 20% down.Move mom into it, remove yourself from her account, then do a Lease Purchase, (record the lease) structuring it with you giving a credit to pay closing costs and after 12 months of having her making payments to you,  have her refi into her name.  

I would either work on my credit score to get approved for loans, or consider going back to school so I can both get a better job and use the extra loan money to buy and rehab real estate.

Owner of 2nd mortgage started foreclosure 2018 for non-payment and was pulled into Chapter 13 BK. BK Judge released BK hold to allow foreclosure by me after I proved the Original owner had quit-claimed property to ano...

@Jordan Bochner I know a few local credit unions will do 3%-5% with PMI for owner occupied single families.

You can ask for concessions, but they have no obligation to accept them, and we don't know for sure if the problem is that the tenant required 60 days or if the tenant is just being difficult and their credit is bad enough that they don't care if they get evicted if it means a couple more months of a roof over their head. 

Your best bet may be to find a local credit union as they tend to have more flexible terms and higher LTV's than traditional big box banks.

Cons: have to pay a PMI for X amounts of months.My credit is excellent so I don't have any concerns of not getting a loan.