This discussion also gives you the opportunity to clarify any security deposit, so you don't get caught up in he said/she said disputes about whether there's a security deposit and how much.

The kitchen features a full suite of appliances, stone floors, high-resolution laminate counters, tiled back splash, pantry and breakfast bar.

What do you do to ensure that the tenant is responsible for security deposit disputes since that is the largest reason for owner lawsuitsHow familiar are you with the newly changed laws that can affect you the owner if they are not used correctly?

The vast majority of Landlords will be sued, but it will be over a security deposit dispute or something small.

At that point you reach out to the CO, explain what happened, and I expect that you will get a resolution. 

Yes indeed, certainly if there is no dispute between parties that have the verbal agreement.    

We all do it :)I agree with your statement, but it is hard to dispute the facts regarding the couple in their 80s. 

Has anyone used a cash for keys resolution, offer the bad tenants a few hundred buck for them to move out in a couple of days?

I would pay no more than the agreed upon $500 until the dispute is resolved. 

So I'm looking for additional information to best navigate the situation and facilitate resolution to a property that originally went into default in 1/12.In my opinion, a short-sale won't go through on this property even at the listing price.