Which leads me to a question of whether or not it is worth creating an LLC to begin with or having a Umbrella policy in place.

I am also interested to hearing what the trends are in the Denver market or even Colorado as a whole, particularly with regard to government policies and projects, as well as forecasted population and economic changes. 

The policy angle is always good, too.

Tell them you would like to purchase that condo and ask them if they would have anything to say about it or what are their policies with regards to new owners.

This may just be a Wells Fargo policy (all of my deals were auctioned by WF); they evidently offer cash for keys after foreclosure so their Asset Protection army can secure the place to prevent further deterioration and devaluing. 

If you can use the same escrow company on both ends you can make it really easy by getting a pass-through title policy and they'll already have access to the payoff from the servicing company they sent it to originally

That reduction is likely caused by the fairly regressive tax policies and benefits reductions begun as part of the "austerity" provisions of the original bailout.

If you move it to a liability policy for tenants they gotcha!

Maybe consult an attorney savvy on Fannie Mae policies.

you might check and see if your insurance policy was in place to cover contents, you may be able to put in a claim on that?