Lawsuits will also inform that process.

A simple one is to help protect your assets from the risk of lawsuit.

She declined.Scenario #3)Owner was caught up in predatory lending refinance scam (found online info of a class action lawsuit including the loan), but has left property. 

That's not to say you don't have to work hard with a fairly steep learning curve, but the risk of lawsuit goes down significantly (especially if you also communicate well and follow through on your promises).As far as taxes go, I would recommend you check with a CPA; however, I've found that the additional write-offs, etc have helped me on an annual basis overall. 

What is the proper way if any to safeguard yourself from such lawsuits?

I called the county and they said the property is under a law suit and with a law firm now.

A couple of other 'side benefits of hold in retirement accounts are that in general those accounts are more protected in bankruptcy or lawsuit cases, and if a person has college aged kids assets in retirement accounts are not counted towards financial aid calculations in many cases (but not all). 

My debt to income is about 36% and LTV is fairly low as well.The caveat is that my neighbor and I have had a disagreement about a fence I put up because he believes they are not allowed and has filed a lawsuit in Chancery court .

However if you plane on keeping it long term I would definitely replace everything it will save you a headache in the long term and a possible lawsuit.

Any studies/reports on what the average property related lawsuit settlement is?