Later, during the dispute which arose, William admitted to me (with another person listening to the convo, so don't even go down the road of lying to everyone again) that he still had set nothing in motion to return the funds and wanted to keep me as a buyer. 

We work as REO brokers for the banks, and typically they do not accept offers with any contingencies - we are always instructed to counter out everything except for financing, which is typically 7 - 10 days for a full loan approval.On another note, which most buyers are unaware of - most REO properties are sold with pre-determined Title and Escrow companies, and almost all sellers (banks) that we work with cannot cancel an escrow and open a new escrow if the deposit is in dispute - so the seller typically refunds the deposit in order to open a new escrow and sell the property.So, is your deposit ever really at risk...

The previous owners actually paid the taxes after the auction, which surprised me, so since the December rents have already been sent, I'm not going to dispute that.  

As fir due diligence, I don't think you need to go looking for family but have a way to show them that you cared and lessen your chance of a dispute.

Just curious if there are any national banks worth looking into or alternatively, has anyone ever disputed an appraisal? 

I'd recommend having a professional dispute it (like Texas Tax Protest or one of the other companies listed here).

In Texas, the frivolous filing of a lis pendens can be a big problem -- the filing entity must have a bona fide interest in the property and the title to the property must be in dispute.

Agents should wear two hats into every listing appointment, a licensed, ethical Realtor hat and an investor hat that can help them no matter what their situation is and come out of every appointment with a resolution for the homeowner.To specifically address your question, my thoughts would be that the wholesalers you are being contacted by don't have a good buyers list and are using you to reach out to your network.

Do not forget to check for their online presence, reviews, and public data on disputes, complaints, lawsuits, or bankruptcies. 2.

Tenant disputes can be a huge time drain and can cause good tenants to leave your property.