I am sending rent invoices and they are directly depositing the rent from their checking account to mine.- They had their corporate counsel review the lease and request a few changes.

With that said, my goal with advance booking is to bring-in a decent amount of revenue during the offseason (winter), but don't want to scare anyone away with a large initial deposit, and of course I'd like to discourage cancellations.  

You will likely need to come up with the 5% deposit required at the time of winning the auction on your own.

Should I do a non refundable or refundable cat deposit? 

And she's still responsible for rent until she moves and needs to be out by Nov 30 at the latest.My lease says that they lose their deposit if they break their lease.Do you recommend we keep the deposit or should I let it go? 

There you will be asked your criteria and then after answering a few questions you will be matched with 3-5 agents or loan officers in your area.

After 18 months I still didn't have a building permit and decided to cut ties with the builder and forfeit my deposit. 

Deposited money goes directly to loan principal.

How will you remain anonymous once that claim is filed when you are required to respond to discovery requests, answer interrogatories,  participate in depositions etc.?

One to hold all the security deposits and the other for collecting rent and paying your bills.