The same letter also tells them we may accept a short-term payment plan (3 - 6 months).2.

Than it goes even further to what amount of cash flow is acceptable to you, in your area? 

I'll see what can possibly be drafted to protect me in case my offer isn't accepted.

My mortgage guys tell me they can't find any lenders that will accept a seller second to fund the down payment but I'm sure there has to be some options out here.

Send a certified letter to landlord quoting the state law and time frame, and offer to accept "only" your full damage deposit in exchange for dropping the court date.

The reserve requirements get tougher after 4 properties and again after 6 properties. 75% of your 401k are usually accepted as liquid assets.

I'll be speaking with them soon to understand the financials and confirm their goals with the sale...which previously was to get rid of the property and any ties to each other.As time has passed, their stance on solutions that they would accept to help solve their problem potentially has changed.

SECURITY: Security Deposit or Landlord Tenant Agreement is acceptable as collateral.

I sublease instead of writing a new lease because I have lost some control in the process in that the new tenant B must be acceptable to the remaining tenant so I must keep that in mind during the process. 

I have a limit of two free range critters.If you do decide to accept that one, I hope they charge a hefty pet fee!