It's in an area I am fighting to improve.   

There is a lot of Wholesalers (I will agree) who get into the business that have no idea what they are doing, and in turn, perform illegal acts knowingly or unknowingly. 

If there are no concerns about the property losing value or neighborhood turning, or maintenance issues, and assuming that the property is performing well, I would hold.Maybe you will find something you like better *as an investment* and that will perform better and reduce your risk. 

What are the ramifications should you own the note, aren't able to modify it/get it performing again, can't get the deed in lieu, only left with starting the foreclosure process, and during the process the occupant declares bankruptcy?

From what I have seen so far, this site has has incredibly awesome members helping others and improving their own lives in the process.May this new year be a prosperous one for you,Cloud

But either because it wasn't as much as feared, or that investors just liked having a defined picture of what to expect, I've found that investor interest in our area has improved since the summer troop strength announcements.  

What are the ramifications should you own the note, aren't able to modify it/get it performing again, can't get the deed in lieu, only left with starting the foreclosure process, and during the process the occupant declares bankruptcy?

I have gotten low as 5% from a very professional management company, but my rents were $2k each and they had several of my properties.My manager does not charge me fees when they go to the property, but their maintainance contractors do if no work was performed.

I do not over-improve rentals.  

You should do a search and read the actual text for yourself, but I'll sum up.Assuming a tenant otherwise passes your screening, you can not deny them based on a disability (or their need for specific improvements for that disability).