The 10k is initial payment of a mediation settlement.

I've done many deals on a handshake, the contract was made after the closing instructions were given to the settlement agent, in other words, no real contract until we got to closing as there must be one on file with the settlement agent.

And a final question/comment - it sure seems like a settlement with a title company would surely result in something going back to the original mortgage company and flagging the change over.  

They would need a pretty comprehensive and sizeable liability policy after some of the 6 and 7 figure settlements I've seen.

The important thing is to have a good screening process and get good tenants going forward and remove the bad ones as quickly as legally possible.As much as the idea of a settlement may feel like it will teach them a lesson, it probably won't and you will only incur stress and bills.

Usually how it goes...unless you have someone who knows how to negotiate an upfront replacement cost settlement. 

Most warranties will give you a cash settlement for items that you had to dispatch outside of the warranty. 

I believe an investigation should takes place and certain property damage settlements to be reviewed.

If Buyer and Seller agree in writing to an assignment of this Contract, the original parties to this Contract remain obligated hereunder until Settlement.”Compared toBIGGER POCKETS Wholesale Purchase and Sale Contract“ASSIGNABLE CONTRACT: BUYER MAY ASSIGN CONTRACT IF FINANCING CANNOT BE SECURED.”The two things I would be cautious about in using the Realtors sales contract if one's intention is to wholesale only is: 1) the assignment/wholesaling of the buyer's right requires the seller's approval, and more importantly 2) the original parties, meaning the initial investor, remains liable until settlement.

I send over a DocuSign letter stating a settlement amount, a pay-by date before I rescind my offer, with a breakdown of charges.