It happens all the time, no tech required, any time someone is foreclosed on.

I agree it's wiser to avoid such situations but a lot of people end up delegating this kind of responsibility. If enough of them end up burning their own fingers, that could go badly for a provider. Even if frivolous lawsuits weren't a thing, a spate of ignorant but angry social media posts could be very damaging.

Again, I'm not saying I necessarily have a solution or that hardware owners should have hurdles placed in their way. I'm just pointing out that in some ways the provider may be damned in one way if they do and damned in another way if they don't.

I suppose the IoT sub-sector will end up in similar proportions to other, older tech: Some vendors, analogous to e.g., Red Hat or Linode, will specialize in catering to enthusiasts / power-users and have fairly noncommittal / at-your-own-risk / no-warranty license agreements. However, if the past is any indication, most people will end up doing a lot of business in walled-garden analogs of Apple or Facebook.

That makes sense to me but I'm not sure your average judge/juror would see it so simply--especially given that in most cases it'd be a lot easier to tell if/when a deadbolt has been modified.