If they told you the truth, they'd be out of business, they'll tell you what they want you to think, yes, some will flat out lie, probably plead ignorance, you can bet their tail is covered.

Time to plead the case, Court time for tenant to evict, and then a Writ of Restitution to remove the tenant from the premises if they do not leave.

Guilty until proven innocent on residential loans is how many underwriters do things.You do not have a long history yet of work and the work you do have is seasonal along with you want FHA with little to nothing down.

There is a flip on the market in 20851 right now that is guilty of all these sins.

I pleaded that he will have an opportunity to make money on this fix and that if I don't pay, he can put a mechanical lien on the property and if everything works out, every project in his territory is his.

Criminal Lawyers still have to STRONGLY represent their clients even if they think they are guilty as hell.  

So in the case of a multi with a single shut-off, it is better for the landlord to pay and collect from the tenant in order to avoid shut-off for those not guilty of missing the payment. 

I suppose the seller could try to plead ignorance, but if they've been served with papers by the City, that's wouldn't hold up in court.

I too have been guilty of "trusting" that someone is going to do you right.

and as mentioned you do have responsibility for due diligence just because a seller might be guilty of wrongdoing your damages might not exceed your legal fees