I'm wondering if someone with experience in self-directed IRA investing could comment on the possible path below (I acknowledge no one responding is providing legal advice, etc. and I should check with a lawyer - I'm just looking for whether going down this path might be possible before calling my lawyer and getting a bill). 

Everyone acknowledges that real estate can go up and down over time, but it is the predicting part that is near impossible.

The tenant acknowledged the situation and pay for the repair minus a deduction for normal wear and tear.

In instances of purchase of property, lease is executed subsequent to buyer entering into a rental lease agreement with inherited tenants.This agreement is preceded by review of due diligence documents provided by seller to buyer.Tenants acknowledges that Agent is entering into this Lease in reliance on the information contained in Tenant’s rental application and or all other information provided to Agent by Tenants or Tenant’s current landlord/property management team in the event of a property sale, all prior to this lease agreement.

As you acknowledged you could payoff the loan but closing costs would just about eat up any remainder.  

However, you need to acknowledge that really dumb mistakes are made by lenders on many different levels. 

She didn't acknowledge the notice and it has been unopened, taped on her door for 10 days.

If it's a complaint about being dirty, broken mailbox, or other non-essential stuff, acknowledge it but don't jump immediately to fix it.Follow your local rental laws and don't let bad tenants bully you.

Also, in some portions you state you believe it worth $700M and then in others you state $890 with acknowledgment that that value is "adjusted"?

And there's also a very quick deadline that you won't budge on.Note: "Cash for keys" should never be actual cash unless you can get him to sign a receipt acknowledging that it is a partial refund of the deposit.