I'm also not sure what you mean about having to "approve" him unless it's specifically written into your governing docs or you're a cooperative rather than a condo.  

jk ;)I sort of stumbled in to RE working for the past 6 years in bank regulation.

Investor loans fall outside those regulations.

When you are an agent you have additional responsibilities and rules that a non-agent investor wouldn't have to consider such as disclosures, agency, representation and your local board of realtors regulations to name a few.

They usually don't have as stringent regulations as the big banks in what they can lend.

Make time to visit their offices, they help you much better than just over the phone, while doing so, be on the low down and have those government workers feel your pain.I wouldn't approach the tenants directly, as the case at hand might bring out outrages or could end up violently, have law enforcement do it, that way they have records on your case too and if hell breaks lose, at least you have records and not just hearsay vs hearsay, benefit of the doubt goes to him, let your tax dollars work for you.

It can be a complicated business and definitely takes time to learn before diving in, especially because each state has different compliance stipulations and legal regulations.

I know it's hard to believe but it all part of government and government regulated industry: bad behavior is rewarded, good behavior is punished, failure is rewarded, success is punished.

While most contracts/regulations require buyer and seller to sign off canceling a contract and returning EM, most contracts are declared null and void upon the subject property being foreclosed.

Interest rates are low, but if we run into any strange regulations that limit buyers' ability to get loans, things will slow down.