I do like the thought of commercial borrowing by merit of the the property itself rather than my debt to income.

There are many posts on the finer points of wholesaling, and many with real-world examples and lively debates on the all the merits and disadvantages of various methods. 

Or they are buying it to have a place to live with have a little bit of payment offset (renting the other unit) and not as a fully self sufficient investment on its merits. 

I look at each deal on its own merits.

This way we can get a good grasp on what this thing looks like along with pricing/ terms to see if it has merit of further pursuit.  

I'm still saying this is/was a cash flow positive opportunity.I understand your other points and agree there is merit to many of them.

You need to educate yourself on the merits of owner financing, creative financing.

Both have their merits but they are not all the complementary.

We passed on the information and my sense is that the attorney discovered there was no merit to the lawsuit or the insurance company is negotiating behind the scenes. 

If the claimant doesn't, then the owner has the right to petition the court to get the stale lien removed if he refuses to do so and per statute,  can recover a judgment for attorneys fees and costs incurred in getting it removed, regardless of the merits of the underlying claim.