Funding fell through, couldn’t wholesale it; paid $1,000 tuition to the School of Hard Knocks and forfeited my earnest money!

The bank has agreed to our last counteroffer on the purchase price but now they want me to sign a form stipulating that we have to agree to forfeit our 10K in earnest money if we walk away at any point after I sign off on the inspection (i.e. like if we can't come up with the cash for some strange reason).The bank informs us that this is there way to feel more secure--given my 45 day waiting period---that I'll pay for the property by the specified closing date.

UNLESS of course you have contracted to make some or all of your EMD subject to forfeit. 

Earnest money is the deposit that is forfeited if you break the contract.  

The buyout stated he would forfeit his SD, and pay 1 month of rent.

Because if we do not agree on something in the agreement and I refuse to sign it, they might say that I'm backing out and hence have to forfeit my deposit.

If you default they are required to give you notice, usually 30 days to cure your default or you forfeit all interest in the Contract and the documents are turned over to the Seller, and files the Quitclaim deed from you to him.There are more details but hopefully you get the idea.

if she defaults, i will take the house back and her money will be forfeited. 

Your only option is to terminate the contract and forfeit your earnest money. 

So if you purchase a home personally, transfer into your LLC, you forfeit your title insurance and will have to get a new policy.