You can easily spend scores of hours dealing with this issue and may not have any success.It likely affects your property value more than a few hundred dollars.It may result in happier and longer term tenants.The risk is they tell all of their homeless buddies who now set up behind your rental in hopes of getting an easy $100.It is just moving the problem elsewhere but in this case the NIMBY can affect your finances. 

I am not sure a judgment raises the red flag any higher or makes it bigger, but it's your money you are spending on it.

Check with your attorney on how to proceed.In my mind... and perhaps the borrow may be thinking the same thing... if you're in Ohio and they are in Alaska... how much money are you going to spend to make the situation right when the outstanding balance is at $12k? 

Or would the additional equity probably not really make a difference considering the out of pocket expense we'll be spending anyways on the deck?   

I'd recommend spending the money to have an attorney draft one for you. 

With all my expenses figured in plus mortgage I will be spending about $1000 a month, so cash flowing roughly $455 a month right of the bat. 

The rules of an MLS usually say that when a buyer has been identified and the property is no longer available, the status needs to be changed, which is probably what's going on in your case - the property might still be available, and the buyer may or may not close, so they don't want to shut everything down, but also don't want other agents to spend time on a deal that might not be available.

I have about $5k to spend updating it.

@Jose Vazquez don't spend a bunch of money on all the various things you can spend money on as a realtor!

If anyone would care to share contacts I could use a property manager and a CPA who's knowledgeable of rental loopholes/tactics.Right after I purchased the property I had to spend approx $20K on some rehabs, I'm hoping I locate a CPE who can write off 100% of this despite my occupation of 40% of the property.Thanks