Mainly..termite damage, and old plumbing/mold. 

I googled some of this, some articles say that there are no regulations for this kind of stuff including skip tracers.Account Closed thanks for the info, would you know anyone who might know the answer to it.

I do recommend strongly to understand the laws and regulations for construction in NYC.

Plumbing?   

Does anyone know what RCW's or regulations I could use to double check my assumption and also help educate those that think this is wrong?  

Written in the loan docs for most loans are clauses that allow the bank to take the funds in your checking/savings accounts, sometimes for reasons totally outside your control, such as banking regulations and requirements. 

A campground would be regulated like a subdivision per county regs, and that wouldn't fly.

Plumbing, electrical and HVAC all need completely replaced...this part we had a good idea of, but the excess costs including the mold are escalating beyond what we budgeted for since this is a 3,000 sf house.  

Exterior hardie, Sheetrock, and plumbing, punch I can have it done in a month. 

For the gas utilities, assuming the mechanicals are in the basement, it's pretty easy to re-plumb heat and hot water appliances from the third floor meter to the second.