@Jimmy WatsonWhat fees are listed on the good faith estimate?

Plus... it was a show of good faith on their part to even ask for a rent reduction, and try to stick with their lease rather than just skipping town, and leaving me high & dry.So currently, the house is rented for $700 per month.

You have been dealing in bad faith. 

Most professionals will do an initial lookover for free in an effort to build good-faith in a client relationship.  

It causes problems when they come in high or low, so it's common for them to simply justify the sales price through comps and such.But I agree, people put WAY too much faith in those guys.

Possible issues, you tax basis is inflated, or can seen to be.I'm not basing a loan on an LTV with you walking out with cash or seller concessions.As a seller, I don't think so, we will have to arrive at a different price.Look to any "net listing" issues, your client is receiving a net amount.I suggest you terminate the listing and then deal for yourself, simply disclosing you are a licensee.As to the HUD-1, aren't you meaning a Good Faith Estimate of Settlement, (?)

If I have three roomates who cannot afford the 3Xs requirement of this rental which happens to be $595.00 monthly individually, but jointly, then would it be OK if I require each to afford 1.5Xs the monthly income, should one of the three not faithfully pay their share of rent.

Otherwise, if they go to BK your title transfer will show, the seller's equity will be considered, the court will probably allow past deals made in good faith, but timing is an issue.

If they stop paying and you have to sue, it will be helpful if you can demonstrate that you have been making good faith efforts to find a new tenant even though this should not be your responsibility. 

I sent them a lot of "good faith" payments to be elilgable for loan mod reviews, but never got one, and all the money  I sent seemed to go to things other than the actual mortgage payment.