The only way you can show cash coming back to you on the settlement statement is if it is a return of earnest money you have previously placed. 

To answer your question directly,  the difference can be settled at the settlement, or you can just have the seller write you a check for the difference post settlement.

We settled the back taxes, cleared the two probates, negotiated a small settlement with the IRS and when we finally got a clear title we sold it for a profit of about 92k.

NEVER give authority to someone else to handle the transfer.Here are the sources how they hack you: You announce on a public forum you are doing a transaction, You have credit pulls and you use the same email address with lender and settlement/attorney.

If the Realtor doesn't know how to get from there to the settlement table in the most advantageous way for their client, they are not the best choice.  

This agreement states you should never speak of the settlement they gave you and never mention their name in a negative context ever again.

But this advice is in the client's best interests and that is all that counts.)You are a CPA and know that to avoid capital gains, you need to be able to say at settlement that you have lived in the home 2 out of the last 5 years. 

I do realize that you valuation can only be raised 10% per year with the exemption which can usually be offset in year one by protesting the taxes and using your settlement statement 

Specifically Saginaw, watagua, white settlement, keller, or surrounding areas? 

The underwriter with conventional financing will need to look at the purchase contract, final HUD settlement statement, and to verify that you've made on time payments so far on this wrap loan to ensure there is a good payment history prior to the submission of the rate/term refinance.