I appreciate this thread because while new here, I have not read how easy it is to be overwhelmed by life’s circumstances that your gutted building stays that way for years.How timing of buying a rental coincides with your baby needing medical care for a very unknown diagnosis that leads you all over the states seeking a cure. 

It's interesting you're considering suing before you've submitted a claim and given the insurer an opportunity to investigate the matter and if there is indeed a covered defect and coverage, to cure it or pay your loss.A title policy is a contract between the insured and the insurer with rights and obligations on both parties. 

We wanted her out due to another issue but have given her a seven day notice to cure that and she did (we are in Iowa).

Just wondering if you should buy the lien at a discount and foreclose against the property to cure it.Also I would be interested in whether or not your agreement releases the seller in the case of a lien.

The Lease Option generally terminates and requires no further action to cure other than what is required by a landlord and the same with the Lease-Purchase....but a poorly drawn Lease Purchase can easily get to a point where a foreclosure action would be required.There is also one you didn't ask about and that's a Contract For Deed, where title is held by the seller until the terms of the contract are met and then a pre-arranged deed is delivered to the buyer and in the event of default by the buyer a quit claim deed is delivered to the seller or for their benefit.

Oh what a tangled web we weave when first we practice to decieve.Give notice of the sub-2 and have the buyer obtain a new policy, before any lender goes the due on sale route they will give a notice to cure, if you can't do it then fix it then.If you are scared to death of the due on sale, don't do a sub-2, use a contract for deed if that is allowed in your state.

When negotiating originally you found the item the seller needed solved and you convinced them that the cost to cure their need wasn't outrageous.

My brother just had his third surgery and was cancer cure against colon cancer and we both discussed getting into something that is that we knew and was more flexible.  

To recap: insurance, condition at a c4 or better, or...have seller agree to carry for a very long time so that you have time to cure any issues.  

Thus the worst case scenario is that you will have to pay the loan off rather then continuing to make the mortgage payments.No big deal as you should never buy Sub2 without the ability to cure the notes taken.