I am also trying to take into consideration that it is a small town where I do not live and that I don't want to make our property a target for more damage for revenge or anything but at the same time they have done this and it must be made right.

You gave notice before she reported a code violation, so if anyone looks like they are out for revenge it is the tenant.

A key point to keep in mind is that your dealing with family issues and the death of a family member ~ there may be fighting, lack of trust among the heir's, desire for revenge from something that happened in the past, etc., etc...When the estate is ready to sell and your ready to buy remember to check for old liens against the property that may need to be cleared ~ liens must be taken care of prior to closing a sale.A good title company can help you uncover potential issues with the property.

They are out for revenge for past injustice you and I had nothing to do with.