In your next deal, try to verify all the data before the P&S is signed.  

@Darvin EzellQ1- Yes, to title immediately to get the workup completed- you need to verify clear and insurable titleQ2- To the title company to hold in escrowQ3- This is a one-shot deal...it's your opportunity to exit the contract based on findingsQ4- To title (based on your question)

FWIW I have side by side identical units in a brick "tenement" with identical heat except for one is 60% attached on the outside wall.

It's identical to mine with a few improvements already complete.

He's telling you to wait a week because you're going to go look at cars in person, or put your contact info on some website, to "think about it" a week earlier than whatever he tells you (this is 100% true, and as a lender I will not believe you if you tell me otherwise... sorry :P ), and the second you walk onto that car lot a bunch of car salesmen are going to descend upon you, deploying various lines of BS as a pretext to run your credit ("it's a soft pull" or "we just need your SSN to verify you aren't a terrorist, we aren't going to run your credit") and close you on a car that very day, and there is greater than a 0% chance you will believe what they tell you and screw everything up.The rule is that whatever you tell homebuyers not to do, some non-trivial percentage of them are going to push it one notch farther than you tell them.

Either way off market or on market you'll want to verify everything.

You should have not closed until you verified that the unit was empty.

The FHA Streamline sweatshops don't need to calculate income, barely need to verify employment, don't even need an appraisal department, virtually zero buy-backs, etc, so there's a whole bunch of overhead costs they simply don't have at all, and they can hire the dumbest/cheapest people for all positions.

Just a clarification question that I think I’ve found already but want to verify.

At Closing, your Title Company will verify that the Private Lender's funds are on deposit (likely wired) prior to any document signing or any money changing hands.