I just recently signed a lease and gave the deposit for the house I'm renting, it's been about a week.

Or rather, where does the deposit go to if the title company is holding it from the 1st side HUD to the 2nd side HUD?

We did the inspection, paid for the inspection(  because the seller asked tenants to give access to the inspector, first time one tenant fail to do so, the inspector have to go to that unit on the second trip, cause us $150 more for the inspection), and requested the seller provide lease, which should have information for the deposit tenant paid, the rent, etc.

The number match and everything is perfect, thus far.

Some clerk at a title company may not have a clue as many use to do them.The issue is with ALTA rules and basic business law of taking title fully before selling, you can have a simultaneous closing, just deposit funds for your side of the purchase and then pickup a check when you leave. 

The big shocker was when I deposited CASH into the business bank account and was charged a fee for processing that cash.  

How and when does the security deposit get handled?

Shefali - another option is a holdback escrow agreement wherein the seller deposits an amount from the sales proceeds at closing to satisfy the lien if it turn out it was not paid.

Those properties closer to the school can always cut their rent prices to match yours to ensure they fill.

I like to (if you have Direct Deposit) Deposit my check in to savings, then ONLY take out what is needed for bills, food and a little splurge (Starbucks, Dining out Etc.)