I hear of refinancing all the time but upon doing some deeper research I learned it costs around 2-5% of the loan amount.

@Ryan KonenThat is a significant amount of leverage and can make it very challenging to make $ on.

.: Quote from @Bjorn Ahlblad: Daniel if he offends again you will be sued for a crazy amount and become famous!  

Saw one person who sent their own demand letters and screwed up the amount owed so the borrower waited up until day before FC, filed an injunction/ temporary restraining order and won and got the case thrown out and started all over again.

(2) Should we expect to settle for the full amount of the court ordered debt plus court ordered interest?

We discussed asking for an additional appraisal with the buyer, but the buyer wanted a guarantee that we would close for the newly appraised amount so we let the deal go.  

First of all I put my acceptance criteria clearly in the ad: minimum credit score (enter X amount, 620 is what I use),income 2-3x rent, good rental history, references, no evictions, acceptance dependent upon background check and employment verification, pet policy, desired lease term, etc. so that people will hopefully read that and not come to the open house if they know they won’t qualify.

You will learn a good amount just from doing that. 

Of course you need to see verifiable income that is adequate for the situation, but the old posts of 4 and 5X rent amount?

I personally say though that no amount of cashflow is worth the risk in a area where you don't feel safe and need to bring a weapon to feel safe.