We feel like their negligence contributed to the situation and they're going to get nothing otherwise (if the city condemns/demolishes the homes), but they insist on the full amount.

I am not liable if I am not negligent.

My philosophy on charging tenants is this: if it's due to abuse, negligence, or major dumbness--we enforce the contract that tenant is responsible for any damages to the house.

This doesn't seem so bad...it actually seems very fair: tenants can't be priced out of a unit without consequences for the landlord, and even then, those consequences are negligible if the new rent you can secure makes up for it.

Please know that if they claim that it is due to landlord negligence, it will be a whole different ball game.  

So they are getting low interest rates, and they also risk losing some of their principal.You are right that there are more new investors at the auctions, but our impact on prices is negligible.  

An LLC doesn't protect you if you are negligent.

Gradual deterioration or aging of anything is not my priority - only stains, scuffs, holes, tears, and excessive damage caused by my fault or negligence.

He was negligent on handling the financing contingency, but errors like that are usually prevented when a good attorney is involved and tracking the timelines.

Comingling personal monies with the business monies, not properly conforming to your corporate requirements (minutes, filings, etc) and managing the entity in a negligent manner are ways your corporate veil are most easily pierced.This is not to be construed as legal advice and you should consult your attonrey as I am not one.