The title company we used Clearview Settlement Solutions completed this transaction in a timely manner.

FHA defines the 1 seller’s date of acquisition as the date of settlement on the seller’s purchase of that property, and 2 resale date as the date of execution of the sales contract by a buyer intending to finance the property with an FHA-insured loan.

I had a settlement some years ago and bought a big house in New England free and clear then  with savings and a bank loan against the big house I bought another home in Florida for 70k now  worth over 100k.

Under new settlement requirements, consumer buyers need disclosures 3 days prior to closing and other requirements 10 days prior if they are getting a loan.

Here are some ideas:Control the property with a delayed settlement skinny contract of sale with the right of possession and the right to renovate.After ratification of your contract - do a lien and title report - make sure you are in a good position and the seller is able to close.Ask the seller for a "subordinated mortgage on the property for as much as possibleComplete your rehab and find a tenantGet the property appraised at a higher price due to your rehabUse the seller financing as your down paymentObtain a loan to pay the seller off - always ask for a prepayment discountAlternatively -Ask the seller to borrow as much as he can on the building with a one time assumption of the mortgage with release of liability after he assigns property to you - he keeps the proceeds, holds some of his equity on a second and you are in for nothing down.Ask to partner with the seller - you both apply for the loan - he keeps the cash and gives you a quick claim to the real estateAsk seller to give you the deed and you'll pay him later after you get a loanHave FUN this is a great business as long as you don't over FUND the deal!

What if you don't close or settlement gets pushed back?

My end goal is to work a settlement with her for like 60% and then release my complaint.

Until you have have a fully executed settlement agreement, you have no short sale.

@Jose Falconett unless someone has foreclosed against the property for a debt attached to the property (ex: Mortgage foreclosure) then those debts simply get paid out at settlement. 

If he owes $100k on it, and needs to pay that off to reset his VA entitlement, he would need a $100k (plus closing and settlement costs) down payment just to walk away from closing breaking even and seller finance the rest.