My request for the root cause of the failure has yet to be answered.My frustration comes from the lack of transparency into how the deal was structured with GPs/Operators.

@Marci Stein Do you have any objective source that suggests soap or washer outflow is harmful to a sump pump?

I could not live or rent my apartment for 5 years due to mold issue caused by the building.

@James Carlson I doubt most people are following those occupancy limits and they are probably only enforced when people are causing trouble. 

Catch all the red flags prior to submission cause once you submit a file that has uncaught red flags, that's when your process slows and lender's get nit-picky.From a lender, I want you to work fast, if I am hustling on my end to make it easy for their processor and underwriter then I expect fast work with an open line of communication and I want my rep at the lender to be able to fight for me or my clients should an obstacle arise - which they usually do.

We lived in it for a year, remodeled both units and put in place a long-term tenant on one unit and a mid-term tenant on the other.Here's a little more details about this deal:*   Purchase price: $163k*   Financed price: $132k @ 7.625% APR*   After repair (estimated value): $225k*   Gross rents: $2150 ($750 one year lease & $1400 six month lease)*  Annual taxes and insurance: $7000*  Approx credit score: 650 (I used interest free credit card to pay for remodeling this property and maxing it out caused my score drop almost 50 pts!) 

I believe you will need a very good reason for why it should be delayed with an explanation as to how it will benefit or at least not cause additional harm to the Trustee's beneficiary. 

Is there any harm (mainly tax liability) in waiting 3.5 years and both refinance the mortgage and transfer the title together? 

Add to this the increase interest rates have caused commercial MF residential to get hammered.  

Pocket deeds, pre-signed deeds in lieu and similar cause big problems in the context of title insurance.But what I am suggesting here is that a quitclaim deed in particular executed when that party doesn't have good title... grenade.