I use the following wording:Should tenant become deceased, incapacitated, incarcerated, or otherwise unable to remove their belongings from the premises, tenant gives owner full authority to turn over these belongings to: (Name), (Relationship).

To make things more complicated she thinks that he is incarcerated and we have to close before the house goes to auction.

I search court records to gather information on the inappropriate incarceration.   

People die, become incapacitated, or incarcerated, again, courts may hold up payments, while in default a lender may not proceed.Collateral is destroyed by insured perils but it's not sufficient to pay a second off.Other liens can take priority, child support, tax liens, student loans or government debts, so check the priority of liens, but what also might be the likelihood liens might be created that can still go the head of the line.Fraud in the origination process, by the lender, it may not be discovered until later on, arising from some other matter.I have  no idea what Dave does on a recourse basis.

Is there any special considerations or laws concerning an incarcerated homeowner?

I dont have personal experience with either, but I have tried to protect myself from both.My application has a spot on it where they are required to list an emergency contact person who can assist in their move-out if they become deceased, hospitalized (long-term), or incarcerated.  

I know the feeling - it's not fun being incarcerated everyday.

You can get out of your shell with this deal, but you may come out of your shell, but be incarcerated to a job that will eat your alive!

The program primarily helps grandparent gain legal custody of grandchildren when the parents are incarcerated or running and drugging.

side of things, I've done mortgages for formerly incarcerated persons that, based on information volunteered in two particular cases that come to mind, it is pretty safe to say were felons.