Payments sent in by a borrower held in suspense or unapplied would have to be applied to the account prior to any approval of amounts due from court ordering the sale.Again, the steps toward remedy here are:  (1) Contact loss mitigation person and inquire about missing or inadequate items sent; (2) Send in those items (3) Await relief responseOnce all items are sent in properly a mortgagee must respond with a plan or denial of relief within 30 days.  

I like yours, but I would add that they would need to replace or repair any damaged materials, as well as mold mitigation.  

well we have to all start somewhere.. but I like your thought process.. its much easier to do these deals when things are rosy.. the rubber meets the road when things are not.although well cashed up sponsors could mitigate the lack of long term experience  in the market place. choosing the right sponsor is in my mind as critical if not more so than the deal itself.

Your biggest benefit of having a broker mitigating liability.

The second cash flow benefit would be mitigating the ill effects of a rise in rates. 

We only invest in landlord friendly states because we want to mitigate as much risk as we can. 

As @Bjorn Ahlblad mentioned there are some time constraints when doing a 1031 but there are also ways to mitigate those constraints.

Come up with ideas of how you could mitigate that potential loss.

@Jason Langmo, a 1031 exchange can be used to mitigate future gain. 

Can anyone suggest a good local water damage mitigation contractor, and/or someone that can replace and install new drywall?