She does however, have $100,000+ in savings, but its from a divorce settlement.

Gave them a week to accept the settlement offer, if not I proceed.

What happens when local, state, and federal governments and their agencies are no longer able to bring in enormous tax revenue via settlement cost, appraisals, rehabs, construction permits.   

Is there a reason you don't want to share the settlement paperwork from your purchase?

It was very tough at the time to delay settlement another 45 days though just to avoid capital gains tax.

My "should be amicable" divorce took 18 months and cost me about $30k in settlement and legal....just a word of caution.I'm the son of a CPA and have paid way too much to lawyers recently, but am neither myself, so consult proper counsel.

I have looked at properties that are so bad that my offer required the owner to remove the tenant as a condition of settlement due to the living conditions.   

2) Has anyone been able to do an arrears settlement, offering half of the arrears in cash?

You do not have to use an attorney to settle but real estate attorney's can handle settlements for you if you choose. 

Settlement issues, might be if they had been foreclosed upon, but these are current, again no issue really.