Second, I found out that her daughter is a recovering addict whose sectioning was denied.

The tenants of course denied that they were smoking or had animals on the property.

I always push having proper coverage with my landlord clients because a denied claim is a loss of their paycheck!

Why are they denying coverage? 

If It gets denied, I would consider adding a second drive way to my property which would the tenants to have  1 car in the garage and 2 on the drive way. 

I tried opening snd was denied access. 

I don't want the underwriter to deny the loan based on that but the originator said it would be fine.

If their lender hasn’t ordered appraisal they can always have the lender deny the borrower’s application for anything, anyway, thus not satisfying contingency and they would get their earnest $ back.

The tenant denied that they ever had disputed and refused to pay the late fees $250.

However, that is an assumption and only discussions with active market participants can confirm on deny this.