How much of net proceeds from flip should I share with them?

You're right that you must use your 1031 proceeds for the purchase of real estate. 

Which basically tells the seller that you are going to do an inspection, but that the inspection is for informational purposes only and you will not request any repairs be completed by the seller.This clause also gives you your full right to do an inspection during the neogitated timeframe and if issues arise that make you not want to proceed your purchase you can exercise your inspection contingency and back out with your earnest money being returned by the seller.This is usually a compromise for someone who wants to make their offer more aggressive in the sellers eyes, but is not comfortable (based on experience or condition of the property or both) to submit an offer with no inspection contingency.I agree with @Mindy Jensen. 

Maybe they have a time when they need the proceeds or just need it in the spring market.

The mortgage co's representative said that they would be in touch at the end of the court proceedings - from that point we have not heard from them other than these fines.I am receiving some help from a local Real Estate investor who has checked with his RE attorney about everything to make sure we aren't on the hook for anything, but based on this info believes that my family and I should be in the clear, due largely in part to the extensive time frame of the probate process AND the failure of the mortgage co to follow up with our intent to turn the property over to them despite our attempts to reach out since that Nov 30 court proceeding.

And this is usually (if not always) structured not as a sale but as a transfer that is exempt from transfer and recordation taxes pursuant to local law.Keep the mortgage current during the flip and pay the other heir (and the mortgagee) from the eventual sales proceeds.

How could you proceed if something like this came up and you're no longer able to collect rent.

I let her know that this is not a legal itemized list and will proceed with legal action. 44 days: After doing some reading I decided to try to come to a middle ground.

Hello Everyone,Me and my team of International Investors....Just kidding, been listening to BiggerPockets podcast, couldn't resist.Anyway, here is my finances laid out, if you were me how would you proceed?

I let her know that this is not a legal itemized list and will proceed with legal action. 44 days: After doing some reading I decided to try to come to a middle ground.