From what I understand, it seems I will need to verify how the transfer was done in 2007 (quit claim (bad?)

So in that term, the seller agreed to hold certain amount of money for problem that needed to be fixed in escrow account after closing ( i think they have to put certain percentages higher than the bid from verified contractor).

You will have learned to "trust but verify" and that sticking to your personal beliefs, core values and gut instincts will serve you best.Good luck on the next chapter.

However, the buyer is responsible for verifying info.

The agent should have verified this and gotten copies of the leases well before this came up. 

They also will likely not consider rental income that isn't being generated so you will probably have to have enough verifiable income to support the whole loan.

If you're buying something with tenants in place, verify they've been there for a long enough period of time (utility bills, etc.) so they're not just a set up.

However, she said that her parents will be helping her pay for rent for the first few months and that I could check her parents credit background.What should I do to verify she or her parents will be able to pay?

How do I verify that there is/is not a driveway encroachment?

A trustees fiduciary responsibility is a very serious thing and if they don't live up to it they can be in huge trouble, or the trustee IS living up to it... quite hard to know without a copy of the trust and verifying the property is therein.If there is still a probate going for this same deceadents estate... after 10 years that would be quite extraordinary, I had one that will last even longer but it has exceedingly rare and complicated circumstances.