Seller financing is also quite attractive, though I guess there are few of these kinds of deals available. 

I am guessing that the tenant may be short on funds to pay twice for Jan, until reimbursed by the old owner, so would first make your case to the old owner who has the funds you are owed and certainly hope once reminded of that will refund them. 

We will see more investors walk away because the properties aren't performing well, but other investors will pick them up and the quantity will remain high.Rates are anyone's guess.

My guess is that the "broker fee" is actually points for the rate.The underwriting fee seems typical.Alternatively to help with closing costs you could ask the broker to take a higher interest rate to receive more of a credit back. 

@Brandon Larson guessing you own the duplex?

I guess, I am trying to figure out how all this really work.  

@Sonja RevellsI guess the question is how do you know there was not marketable title?

Based on the rents, I would guess the $1350 house is in a C+ or maybe B- area, and the $950 is in a C- area.What neighborhoods or zip codes are these in?

As you can guess the three of us have different ideas on what to do.

But I'm guessing maybe your credit is too low for that?