We swallowed our pride and offered them May's rent back and they leave withing 7 days as long as they sign a mutual general release. 

RMLO comp is a highly guarded secret.. they also make yield spread premiums and servicing release premiums that you will not see.. 

Have her sign a release talking about the deposit, date she left, etc.

A couple days after this agreement (2 days before closing), the buyer decided they no longer wanted to continue with the deal even at the newly agreed upon price and did not sign for the new price.Originally they were signing the release for earnest money, but are now deciding to fight to keep this as well. 

.********** makes some valid points, and you dont want to get into a trap where you are suggesting that you will stop a foreclosure, or that you are consulting with them unless you are intending to do a short sale (dont recommend it unless you have some serious patience, and get educated by someone that is successfully doing it in your area).If you are going to try and work the lease option exit strategy by targeting preforeclosures, then getting the deed from them without giving them ANY money (along with a authorization to release information from the bank about that loan), and take the deed into a land trust and you should be ok.

When I lived in WA state, I worked with a number of felons who were being released or had been released from prison, helping them to get started in their own businesses.

My question is, Is LandAmerica liable in this case since they release the deposit without buyers consent.

First of all, if the issue is a lien or judgment that is attached to the property, it may be possible to contact the lien holder and ask for a release of lien.

I don't expect there to be any stock splits, as they have already split 2:1 twice in the past 7 years, but wait next year when google releases their phone software.

That's a permission to release information or some similar form.