If you wanted specific tile set in a specific way you should have verified he had the correct tile before he started setting it, and should have laid out a sample the way you wanted. 

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).

At this point I feel as if there has been identity theft, and clearly several other issues.I made a lot of mistakes throughout this experience and I am aware.

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?