I need to setup the trust to assure my beneficiaries don’t have to go to probate in the event of me passing.

You may want to live in a world of Wild West, anything goes business (I won't mention the orange haired political elephant in the room) but I assure you, your ignorant, uninformed, and weak defense of this sort of activity is not common.

No assurance they want to sell.\- I've marketed to FSBO and MLS expired listings. 

The ambassador was clueless but assured me all would be fine.  

I want to assure that I, as the Lender, get paid FIRST if there is an insurance payout.

But I can't if closing costs are 3-5% for purchase price of each home. 4) How do I protect myself and give the seller assurance from renters with the structuring of the home insurance?

It looks like it might need to be redone, but the contractor assured us he'll just take a grinder to it and it will "look good" at the end. 

Regardless of whether your property is pet friendly, rest assured guests are bringing them anyway.

The seller threatened to put the property back on the market if we don't close in 6 days and the lender is not giving me assurances. 

Your making 2 very big, and I assure very wrong, assumptions here.