I think option 3 is your best bet, but make sure you get paperwork on it from the tenant for the dispute, exact cost, and a signature of release of liability.  

Taxpayers would pay the price.Whatever the resolution, ITT's closing is bound to be a major inconvenience for hundreds of students.Brian Langford, an ITT student from Riviera Beach, Maryland, revealed his frustration Tuesday in a post on a Facebook page for ITT students."

Should I just go fwd with the process of sending a written offer, and worry about resolution of this contingency later?

Then a value dispute may need to be attempted to get it lower, if a value dispute is applicable per investor guidelines. 

The attorney that we use for our leases charges $65 per lease  and will handle any dispute with the lease at a discounted rate.  

I'll update this thread once we have come to a resolution so that if anyone happens to find this thread in the future they will at least have another story to refer to. 

(i.e. disputing that comments were written in MLS listings after I sent the listing in with the comments highlighted;  saying that a sale hadn't yet closed when I submitted both the listing and the transaction history from the title company showing it closed 2 weeks before appraisal date)I am following all the rules and going through the appraisal management company.  

Next step is to dispute the transaction through the credit card company.

I've read some people are accepting debit or credit cards but this seems risky as well since they can call their bank to dispute the charge.

It appears that your project need to be turned over to a Title Attorney for resolution on a pending purchase through an Auction or otherwise.Here in Louisiana the Market is a lot softer for an investor.