I agree with you since you've surrendered direct control of the money until the distribution of funds.

Assuming this property is in Texas, you are required to return the deposit and/or account for any deductions within 30 days of lease termination and surrender of possession  AND the tenant provides a forwarding address. 

Never surrender!

The borrower could have filed a 13 wanting to reorganize and keep the property (Or surrender!

I am amazed at how many of our friends kids blow off college, drive up their horrendous student loans & simply surrender to a life of menial, mind numbing jobs. 

@Jay Hinrichs No permits being issued unless someone surrenders theirs which has only happened once since 2008!

What is the best approach to limit the amount of taxes, fees and transactions we would surrender? 

It's a process whereby a homeowner can basically surrender the deed back to the lender and avoid a foreclosure. 

There is also 2 apt behind in rent but I think they want to surrender the place but are trying to find a new place.

An appraisal usually matters most to lenders.If the PSA has a clause like "property must meet or beat appraisal" or "contingent on financing rate/terms acceptable to buyer" then you may have an out.If not and you've got a p***-poor buyer broker, then if you want out, the E/M (again READ THE PSA) may be in jeopardy of being surrendered if the buyer walks.