You need a title/settlement attorney, possibly a real estate agent, etc. (6) Have your contracts ready to go.

For investment property, the bank will only lend a maximum of 75% of the property value to pay off your existing loan, cover the settlement costs, and then give whatever is left over as your cash-out. 

I think the carriers that have something that will address serious settling issues refer to the coverage as catastrophic event coverage.Are you seeing actual signs of settlement such as cracks around door and window frames, offset concrete block at a foundation etc, or are you just wanting the coverage for peace of mind?

I wasn't given any information on the tenant from the seller (bank owned), unknowing that the bank has reached court settlement with the tenant to vacate the property at a date few months after my closing.

it should have been fixed.Other than that, if there was a slip/trip/fall on your property, contact your insurance company to make them aware, and if you have the proper coverage their legal team will defend.  99 out of 100 times, there will be 'legal blackmail' and a settlement will be reached. 

@Daniel Dollar You're on the right track...here is how your scenario would lookInitial Purchase$100,000 Purchase price$25,000 Down Payment (75% LTV on residential non-occupied...conforming loan)$2,000 Settlement charges $1,000 holding costs$20,000 renovationAfter reno appraised value $200,000Refinance (cash out) at 70%LTV= $140,000-$75,000 (original loan payoff)-$2,000 lenders closing costs=$63,000 cash out with a new lien balance of $200,000 (this is what your new mortgage is based off of...plus you'll need PMI now since your lien is more than 80% of the value of the property)Now start to pay yourself back from your original out-of-pocket$63,000 starting cash-$25,000 original down payment-$2,000 settlement charges-$20,000 renovation-$1,000 holding costs=$15,000You came out positive here, good job...but look at your property...saddled with debt and likely zero cash flow.BRRRR really only works well when you are buying at .50 to .60 on the dollar and have a reasonable renovation...and its really not a good idea to use in most scenarios...certainly not a good way to scale. 

The this will be a primary residence for the buyer and he wanted to use a fanny loan. i have tried to do an assignment but the seller does not want to pay that out of pocket and the lender will not lend on the assignment. i have tried to do a double closing but the bank requires a seasoning period. i am now looking at trying to write in my fee to be paid by the seller in the settlement statement. does anyone have any experience with this?

You might save some money by trying to make a settlement.

Settlement company will charge you a fee...maybe $700.

Your kindness back fired so may be you need to knock her back on her heels just enough (not too much then you got her lawyer to deal with) just enough to back off and pay you a settlement or sign something to get any portion of her deposit back. get her gone in an agreed manner   Did you ask for renters insurance in your lease?