The settlement was caused by a poorly located downspout.

For most of our closings we usually have the seller and buyer at settlement.

In the days when title companies and settlement agents were doing big volume this was not a big deal because they could afford to eat the cost of title if you backed out.

If not, go to settlement, do the repairs, rent the property, wait a year (seeding time) and do it again.I gave the same advise to my young son when he graduated from Rutgers in NJ in 2005.

both for the total amount of the original agreement and the amount you propose as a settlement for work done?

Many first position mortgages will simply issue a 1099.The IRS for an investment property considers this "phantom income".If you are insolvent at the time meaning "liabilities exceeded your assets" then you can file an insolvency form with your tax accountant and the phantom taxes would be wiped out.If your property had mezzanine lenders or secondary loans or HELOC's they will generally act differently then a first position mortgage holder.For the most part the 1st position will recover the most money and the others will fight over the crumbs.It will also depend what your other assets are,if you cross-collateralized loans,and if you had a recourse loan or gave a personal guarantee.Here in Georgia is a lender forecloses and wants to do a deficiency they have to show they sold for current market value.I have seen after foreclosure the defaulted borrower fights the amount the bank sold for as an REO.They disagree with the market value sold for and bring in an appraiser in court.The appraisers generally want to stay out of litigation.The default amount here has to be validated by a judge for the deficiency.Once the defaulted amount is settled then generally the attorney for the bank and the attorney for the defaulted borrower go back and forth over a settlement amount.Once the settlement amount agreement is reached the borrower and bank also discuss terms under which it will be paid.I am not an expert just what I have seen in the field.

I won't go into all the details but I was held liable and my insurance company had to pay a six figure settlement.

If flipping, I believe you gonna have to pay off the hookup costs at settlement (it's only logical).

I prefer a title company that has an attorney doing the settlements.

Thus, the attorney can bring the action in the name of the PM and you are out of the picture except for settlement authority.