It sounds like water is unique  in that it is ultimately tied to the homeowner in case the tenants default.   

Sometimes I get unique answers and sometimes I get information I already know.  

Any unique situations in New Jersey I should be aware about?

Every deal is unique though so this is just an assumption to what you described.

I am finding each lender is unique in their own way, but have received some positive responses so hopeful I can get this done in a timely manner.

Clearly, each person has their unique circumstances and decisions of this size should be taken in context, with lots of deliberation and discussion (for all i know, I could be eating my words on this topic 12 months from now!).

would definitely consult an attorney as this is a very unique situation. 

Get them to purchase a money order OR there are programs out there that partner with popular convenience stores where for a small fee they can bring a cash payment and their unique code, and that payment is sent to you as an eCheck.

Please consider contacting your city's housing assistance division to find out if you qualify for their assistance. 

Is the home being appraised a pretty unique property?